– Payment History (35%): Your history of on-time payments is the most significant factor, reflecting how reliably you meet financial obligations.
– Credit Utilization (30%): This is the ratio of your current credit card balances to your credit limits, with lower utilization generally being better.
– Length of Credit History (15%): The age of your oldest credit account, the average age of all your accounts, and the age of your newest account all contribute.
– New Credit (10%): Opening several new accounts in a short time can be seen as risky and may negatively impact your score.
– Types of Credit (10%): A mix of different types of credit (credit cards, mortgages, auto loans) can positively influence your score.
– Credit Inquiries: Hard inquiries, made when you apply for new credit, can slightly lower your score temporarily.
– Credit Card Balances: Keeping balances low and paying off debts regularly helps maintain a healthy credit score.
Closed Accounts: Closing old accounts can reduce the average length of credit history, potentially lowering your score.