Created by the Fair Isaac Corporation in 1989, FICO scores range from 300 to 850 and now can even influence whether you get a job at some places, the interest rate you will pay on everything from cars to credit cards to mortgages, and more. I'm not so sure Isaac was "fair" at all. Here are the heaviest factors in your score:
Your payment history makes up 35% of your score, and even one late payment can have a pretty large impact. Outsized, I would say. The amount you owe, regardless of your payment history, is crucial. Have you used over 30% of your available credit? Well, they don't like that, despite encouraging you to use it and make timely payments—just don't use too much of the credit they've decided you should have!
Your length of credit history, despite them only existing since 1989, takes a solid 15% of your score, which can hurt younger borrowers and families. So hurry up and age, I guess.
New credit - opened some accounts? Well, that's 10% of your score and seems like it'd already be covered by some of the previous measures.
Your mix of credit types counts for 10%. Only have a credit card? Well, they think that's inadequate. You should have a nice variety of debt, including car loans, mortgages, etc. Paid them off or paid in cash? Well, according to them, that was unwise.
So, essentially, you need to age to be trusted more, pay on time, acquire a lot of credit but don't use most of it, and make sure you toss your debt in a blender to create a nice mix.
This decides so many people's fates it's astounding. Hacked or had your identity stolen by one of the many times they've been broken into? Well, good luck, my friend.