FICO Score Weighting Explanation

In the FICO credit scoring model, the factors are weighted as follows:

• Payment History (35%) - Highest weight
• Amounts Owed (30%)
• Length of Credit History (15%)
• New Credit (10%)
• Credit Mix (10%)

Payment history carries the highest weight at 35% because it demonstrates a borrower's reliability in meeting their financial obligations. This includes:

• On-time payments
• Late payments
• Collections
• Bankruptcies

Type of credit used (credit mix) represents only 10% of the score. Number of hard credit inquiries falls under "New Credit" which represents only 10% of the score.

Therefore, payment history is the most significant factor in determining a FICO score.