Definition
The most widely used credit scoring model. The recipe: payment history 35%, amounts owed 30%, length of history 15%, new credit 10%, and credit mix 10%.
Why it matters
Knowing the recipe turns score-building from superstition into mechanics: pay on time, keep utilization low, let accounts age. Everything else is a rounding error.
Example
A borrower autopays every minimum (protecting the 35% slice), keeps card balances under 10% of limits (the 30% slice), and leaves a 12-year-old card open at $0 (the 15% slice). Their score climbs without any tricks.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.