In the maze of financial advice, it's crucial to understand the real factors that impact your FICO score. Given that FICO scores are used in about 90% of lending decisions, let's dive into what really matters.

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1. Timely Payments - 35%

Paying bills on time is critical, as it constitutes 35% of your FICO score. Late payments can significantly damage your score, regardless of the bill's amount. So, prioritize timely payments to maintain a healthy credit score.

2. Credit Utilization - 30%

This refers to the percentage of your credit line used. Ideal utilization is below 9% per card. Interestingly, most business cards' balances don't impact your FICO score unless payments are late.

3. Credit History - 15%

A longer credit history boosts your score. It's beneficial to have multiple credit cards and maintain old accounts, even if you don't need them, to extend your credit history.

4. Credit Mix - 10%

Having a variety of credit types, such as installment loans and revolving credit, can positively affect your score. A good mix includes around five active trade lines.

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5. New Credit - 10%

Opening new credit lines can temporarily lower your score. Frequent applications for new credit can also have a negative impact.

Factors That Do Not Affect Your FICO Score:

1. Opening or closing bank accounts.
2. Rent payment history.
3. Disputed credit card charges.
4. Location of residence.
5. Age, marital status, race, or religion.
6. Job and income.
7. Disabilities, public assistance, and child support obligations.
8. Being in credit counseling.
9. Interest rates on your current debts.
10. Checking your credit report.
11. Older credit inquiries and closed accounts in good standing.

Understanding these factors is key to building a solid credit score. If you have questions, feel free to drop a comment below!

Hope this helps clarify the FICO score components and guides you in making informed financial decisions!