What Goes Into Your Credit Score

Your credit score can feel like a grade someone handed you without showing their work. It isn't that mysterious. It's built from five things, and you control most of them.

The five ingredients, biggest first

• 1
  Payment history. Do you pay on time? This counts more than anything else.
• 2
  How much of your credit you're using. A card near its limit hurts even if you pay on time. Lower balances compared to your limits help.
• 3
  How long you've had credit. Older accounts help, which is one reason not to close them.
• 4
  Your mix of credit. Having more than one kind, like a card and a car loan, helps a little.
• 5
  New credit. Applying for several new accounts in a short time can pull your score down.

What actually moves it

Pay every bill on time; autopay makes that easy. Pay card balances down. Don't open new accounts while you're buying a home, and don't close old ones either. Check your credit reports at least once a year, free, at annualcreditreport.com, and dispute anything that's wrong. Here's how to read one.