There are five basic factors used to calculate the most highly used credit scores, such as FICO and VantageScore. Each factor carries a different "weight" in how much it impacts your score. Understanding these scoring factors is often the key to maximizing your credit score, so you can qualify for better interest rates and terms on credit cards and loans.
The biggest scoring factor looks at payment history. Decreases to your score are caused by thngs like missed payments and collection accounts.
This is a ratio that measures how much of your available credit limit you are currently using. Anything more than 30% is bad for your score.
This factor looks at how long you've used credit. It considers how many accounts you've maintained in good standing, and for how long.
This evaluates the number of new credit applications you've had in the past 6 months by looking at the number of hard credit inquiries listed on your credit report.
TYPES OF CREDIT
This factor assesses the diversity of your credit portfolio by looking at the types of credit you hold, and whether you have good debts, such as a mortgage.
Credit Score Factors
This infographic provides an overview of the five factors used to calculate credit scores. It helps you understand actions that can positively and negatively impact your score.