Which of the following best describes the make-up of a FICO score and the factor with the largest impact?

• A. Payment history, amounts owed, length of credit history; payment history has the largest impact
• B. Credit card brand, income, employment status; income has the largest impact
• C. Age, residency, number of dependents; age has the largest impact
• D. Investment holdings, savings, credit inquiries; inquiries have the largest impact

Answer: (A)

FICO scores are built from five components that reflect how you manage credit: payment history, amounts owed, length of credit history, new credit, and credit mix. Payment history carries the most weight because on-time payments across all accounts are the strongest predictor of future credit risk; missing payments or delinquencies signal higher risk and therefore have a large impact on the score. Amounts owed matters because using a high portion of your available credit (utilization) suggests greater risk, so keeping balances reasonable helps. Length of credit history matters because more extended, consistent activity provides better data on your behavior, which can raise your score when the history is solid. The other factors listed in the choices—such as income, employment status, age, residency, investments, savings, or brand of card—aren’t direct components of FICO scoring, and inquiries fall under new credit with a smaller impact. So the description that names payment history, amounts owed, and length of credit history, with payment history having the largest impact, is the best fit.