You can see that there are five categories that affect your credit score: 1. Payment history (35%) is your history of on-time payments, missed payments and defaults. 2. Total amount owed (30%)
3. Length of credit history (15%) is not only the total amount of time but includes a few other things. 4. New credit (10%) includes things like new opened accounts and applications for credit.
5. Credit mix (10%) is the different types of credit you owe, specifically non-revolving versus revolving credit.
Credit scores range from 300 to 850 on the FICO scale. Just 5% of Americans have a credit score below 500 and one-in-five have a score in the 800s.
Your credit history is the biggest influence on your score but also one of the most difficult to manage. Opening a couple new credit accounts, using them and making payments each month, will stack your credit history with good remarks.
1. Public records like bankruptcies and judgements against you 2. Any missed payments 3. Liens or defaults