Questions: Payment History

Transcript text: Payment History

Solution

Answer

The answer is Payment History.

Explanation

Derogatory Marks: While derogatory marks such as bankruptcies or collections can significantly impact your credit score, they are not the single largest component.

Payment History: This is the most significant factor in your FICO score, accounting for about 35% of the total score. It reflects whether you have paid past credit accounts on time.

Credit Utilization: This is the second most important factor, making up about 30% of your FICO score. It measures the amount of credit you are using compared to your total available credit.

Amount of Debt: This factor is related to credit utilization but is not as impactful as payment history. It includes the total amount of debt you owe across all credit accounts.

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