Which factor contributes the most to calculating a credit score?

Payment history is the most significant factor in calculating a credit score, making it essential for consumers to maintain good credit habits. This factor reflects whether an individual has made payments on time for credit accounts, such as loans and credit cards. It accounts for approximately 35% of a typical credit score calculation, which is substantial compared to the other factors.

Timely payments demonstrate reliability and responsibility to lenders, and any missed or late payments can significantly harm a credit score. Establishing a positive payment history by making consistent, on-time payments builds trust with creditors and can positively influence future creditworthiness. Since payment history has such a profound impact, it is of utmost importance for individuals to focus on fulfilling their payment obligations to maintain or improve their credit scores.