... / 90 Day Blueprint... / Decoding Your Credit Report: 5 Factors That Drive the Number

Nothing matters more than paying on time. Late or missed payments can drag a score down for up to seven years.

• A 30-day late can drop a mid-600s score by 60–80 points.
• A single 90-day delinquency hurts more than several 30-day lates.
• Collections/charge-offs lose sting over time, but paid collections still score better than unpaid ones.

Action plan

1. Automate minimum payments on every revolving account.
2. Ask a creditor to remove a first-time late and mark the account “paid as agreed.”
3. Bring any past-due accounts current this week.

Utilization measures how much of your revolving credit you’re using. High utilization tells lenders you’re stretched thin.

• Keep overall and per-card utilization below 30 %; under 10 % is best.
• Issuers report balances on the statement-closing date, not the due date.
• Many small-business cards report to consumer bureaus, so heavy spending there can still hurt personal FICO.

Action plan

1. Make a mid-cycle payment before the statement closes.
2. Request credit-line increases (soft pull with most issuers).
3. Shift large, one-off purchases to a card you’ll pay off before it reports.

Older accounts show stability. Closing long-standing lines or opening many new ones at once can shorten average age and shave points.

• FICO considers both oldest account age and average age.
• Being an authorized user on a spotless, 10-year-old card can add instant age.
• Vendor lines opened now start the “business clock” for your PAYDEX score.

Action plan

1. Keep your oldest credit card open—even if it’s rarely used.
2. Ask to become an authorized user on a trusted relative’s long-tenure card.
3. Open vendor-trade accounts this week so the business file starts aging.

Scoring models reward responsible use of both revolving (cards) and installment (loans) credit.

• Installment accounts include auto, student, personal, or credit-builder loans.
• Equipment leases often report to business bureaus, boosting the company’s file.
• Adding a missing category can raise a score 10–20 points over a few months.

Action plan

1. Consider a small credit-builder or share-secured loan at a local credit union.
2. Finance needed equipment with a fixed loan instead of maxing a card.
3. Space new accounts at least six months apart.

Every credit application creates a hard inquiry. A single inquiry costs only a few points, but many in a short span can signal risk.

• Multiple card applications each ding the score separately.
• Auto-loan and mortgage inquiries inside a 45-day window count as one for FICO.
• Business-credit pulls usually stay off personal reports—confirm with the lender.

Action plan

1. Batch rate-shopping for auto or equipment loans within 30 days.
2. Use soft-pull pre-qualification tools to gauge card approval odds.
3. Delay non-essential credit apps until after major financing closes.

Payment history and utilization account for nearly two-thirds of your score. Nail on-time payments and keep card balances below 30 %, then layer in age, mix, and smart application timing. Mastering these five factors now sets up the compounding gains you’ll see by Day 90.