>>13760171To give you a picture, these are the basics of how your score is calculated:
Payment History - 35%
-The most important component of your credit score looks at whether you can be trusted to repay money that is lent to you.
-Have you paid your bills on time for each and every account on your credit report?
-If you've paid late, how late were you - 30 days, 60 days, or 90+ days?
-Have any of your accounts gone to collections?
-Do you have any charge offs, debt settlements, bankruptcies, foreclosures, suits, wage attachments, liens or judgments against you?
Amounts Owed - 30%
-The second-most important thing: how much you owe. It looks at the following factors:
-How much of your total credit have you used? Less is better, but owing a little bit can be better than owing nothing at all. Lenders want to see that if you borrow money, you are responsible and financially stable enough to pay it back.
-How much do you owe on specific types of accounts, such as a mortgage, auto loans, credit cards and installment accounts? Credit scoring software likes to see that you have a mix of different types of credit
-How much do you owe in total, and how much do you owe compared to the original amount on installment accounts?
Length of Credit History - 15%
-How many years have you been using credit for? How old is your oldest account, and what is the average age of all your accounts?
New Credit - 10%
-Your score considers how many new accounts you have. It looks at how many new accounts you have applied for recently and when the last time you opened a new account was.
-If you've opened several new accounts recently, you could be a greater credit risk
Types of Credit In Use - 10%
The final factor is whether you have a mix of different types of credit, such as credit cards, store accounts, installment loans and mortgages. It also looks at how many total accounts you have.
