Educating yourself on what impacts your credit score and asking questions like what are some things that can hurt your FICO score can help you make informed decisions and maintain a strong financial future. Understanding your credit and maintaining a strong credit score is essential for financial health. Your credit history and credit reports provide a detailed record of how you manage your finances, directly influencing your credit scores. At Fancy Financials, we emphasize the importance of knowing how to build credit and recognizing the things that impact your credit score. But what affects your credit scores the most? Late payments, high credit utilization, and excessive credit inquiries are just a few examples of what can ruin your credit score. Additionally, factors like unpaid debts and accounts sent to collections are among the most damaging to a credit score. If you’ve ever wondered what hurts your credit score or what factors affect your credit scores, it’s crucial to understand things that may hurt your credit scores.
Things that impact your credit score:
Several factors influence your credit score, and understanding them can help you manage and improve your creditworthiness. The exact weight and importance of each factor may vary slightly depending on the credit scoring model, but generally, the following factors play a significant role:
- Payment History (35%)
- Credit Utilization (30%)
- Length of Credit History (15%)
- Types of Credit in Use (10%)
- New Credit (10%)
- Public Records (Bankruptcies, Liens, Judgments, etc.)
- Credit Inquiries (10%)
- Negative Information
- Available Credit
Here is Everything You Need To Know About Your Credit Score, History, Reports, and More!

Payment History (35%)
This is the record of your payments on credit accounts, including credit cards, mortgages, and other loans. On-time payments positively impact your credit score, while late payments, defaults, and bankruptcies can have a negative effect.
Credit Utilization (30%)
This is the ratio of your current credit card balances to your credit limits. Keeping this ratio low (typically below 30%) is generally favorable for your credit score. High credit utilization can be seen as a sign of financial stress.
Length of Credit History (15%)
The length of time your credit accounts have been established is a factor. A longer credit history is generally seen as more favorable. This includes the age of your oldest account, the average age of all your accounts, and the age of specific account types.
Types of Credit in Use (10%)
Having a diverse mix of credit types, such as credit cards, installment loans, and mortgages, can positively impact your credit score. It demonstrates that you can manage different types of credit responsibly.
New Credit (10%)
Opening multiple new credit accounts in a short period can be viewed as risky behavior, especially if you have a limited credit history. Each new credit application can result in a “hard inquiry” on your credit report, which can slightly lower your score.
Public Records (Bankruptcies, Liens, Judgments, etc.)
Negative public records, such as bankruptcies, tax liens, and civil judgments, can have a significant negative impact on your credit score.
Credit Inquiries (10%)
Each time you apply for new credit, a hard inquiry is made on your credit report. While a single inquiry may have a minor impact, multiple inquiries in a short period can be seen as a sign of financial distress.
Negative Information
Late payments, defaults, foreclosures, and other negative information on your credit report can severely impact your credit score. The severity of the impact depends on factors such as recency and frequency.
Available Credit
The total amount of credit available to you can also impact your credit score. Closing credit accounts can reduce your available credit, potentially increasing your credit utilization ratio.
Final Thoughts…
It’s important to note that different credit scoring models may weigh these factors differently, and individual experiences may vary. Regularly monitoring your credit report for accuracy, making on-time payments, and maintaining a healthy credit mix are key practices for building and maintaining a good credit score.
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Hi, if we haven’t officially met I’m Blogging Brandi and this is my Money Blog! I am an ex-corporate Kool-Aid Drinker, Born to be a Blogger, Creator, and Entrepreneur. I also LOVE my dogs and RV a lot! Plus, I have a background in Accounting, Investments, and a Finance Degree! So, I kinda, maybe, sorta, might know a thing about money! Check out the About Page for all the details! 😉