What factor is most crucial when determining a credit score?

The most crucial factor when determining a credit score is the length of credit history. This aspect plays a significant role because credit scoring models, such as those used by FICO and VantageScore, generally favor borrowers who have a longer history of responsible credit use. A longer credit history allows creditors to evaluate how well a borrower manages credit over time, including their payment history, credit utilization, and the types of credit accounts held.

While factors like the amount of savings, income level, and investment portfolio can reflect financial stability and overall economic health, they do not directly impact the credit score calculation. Credit scores are primarily concerned with how individuals manage their debts, making the length of credit history a key element in assessing creditworthiness. A longer history typically indicates experience with handling credit responsibly, which can enhance one's credit score significantly.