What Really Affects Your Credit Score — Myth vs Fact

If you have bad credit or are trying to rebuild your credit score, understanding what affects it can save you time, money, and stress.

This guide is especially for people with low credit scores, debt issues, or those who've been denied loans and want a fresh financial start.

• Top Factors That Affect Credit Score
• Common Credit Myths
• Quick Credit Fixes

Top Factors That Affect Your Credit Score

Most credit scores, including FICO® and VantageScore, are based on five core factors:

1. Payment History – 35%

• Pay on time—the most important factor.
• One late payment (30+ days) can hurt your score.
• Collections, charge‑offs, and bankruptcies cause serious damage.

Pro tip: Set up automatic payments to avoid missing due dates.

2. Credit Utilization – 30%

• Keep usage under 30% of your limit—lower is better.
• High balances or maxed‑out cards hurt your score.

Trick: Pay down your card before the statement date for best results.

3. Credit History Length – 15%

• Longer credit history boosts your score.
• Keep old accounts open, even if unused.

4. Credit Mix – 10%

• Mix of credit types (credit cards, loans) shows responsible borrowing.

5. New Credit Inquiries – 10%

• Hard inquiries temporarily lower your score.
• Space out applications by at least 6 months.

Tip: Too many inquiries at once signals risk to lenders.

What Doesn't Impact Your Credit Score

Visual summary of credit myths and verified facts

❌ Myth: Checking Your Credit Score Hurts It

False. Checking your own score is a soft pull and has no effect on your credit.

❌ Myth: Your Income Affects Your Score

Income is not included in your credit score—though lenders may ask about it separately.

❌ Myth: Bank Balances Count

Credit scores ignore your checking or savings account balances entirely.

❌ Myth: Rent & Utilities Always Help

Only reported payments count. If they go unpaid, they can harm your credit.

Try: Using Experian Boost to report on‑time bills.

More details? Read our article on hard vs soft credit checks.

Quick Credit Fixes for People with Bad Credit

• ✅ Always pay on time—use alerts or autopay.
• ✅ Keep credit card balances low—ideally under 30%.
• ✅ Don’t close old accounts—they help with credit history.
• ✅ Space out new credit applications.

Need Help Starting Over?

At BadCredit.Blog, we help people with poor credit histories take smart steps toward financial freedom. Keep following us for real advice—not shame.