A donut chart with five wedges sized to their published weights. Payment history 35%. Amounts owed 30%. Length of credit history 15%. Credit mix 10%. New credit 10%. Each wedge has a one-sentence description of what the Scholar should actually do to improve that factor. Center of the donut: 'A credit score is a delinquency prediction. Optimize the top two factors first.'
A vertical list. Payment history: never miss a payment; automate the minimum on every account. Amounts owed: keep revolving utilization under 10% at the moment the statement closes. Length of credit history: never close the oldest card. Credit mix: hold at least one installment loan alongside cards. New credit: no more than one hard inquiry every six months.
- The top two factors — payment history and amounts owed — are 65% of the score.
- The lever with the fastest effect is revolving utilization at statement close.
Diagrams and schematics accompanying this lesson.