What two factors account for approximately 65% of your FICO score?

The correct choice highlights that payment history and outstanding debts are significant components of your FICO score, accounting for about 65% of the overall score.

Payment history is crucial because it reflects how reliably you have paid your past credit obligations. This factor shows lenders your creditworthiness and the likelihood that you will repay future loans. A strong payment history signals responsibility and reliability, which positively affects your credit score.

Outstanding debts are taken into account through the credit utilization ratio, which measures how much of your available credit you are currently using. Higher amounts of outstanding debt relative to available credit can signal financial risk, thereby negatively impacting your score. Therefore, managing outstanding debts effectively is important for maintaining a healthy credit score.

The combination of these two factors provides a robust assessment of an individual's credit behavior, directly influencing their overall credit score significantly.