There are five factors that determine your credit score. Here they are listed with the approximate value they carry in the credit bureau scoring model.
1. Payment History (45%)
This is the area in which negative listings on your credit report are counted. It will help your score if you can remove all the negative listings.
If you are unsuccessful removing negative items you still can have a good credit score. It is rumored that after 4 years a negative item has much less impact on your score. Also you should build a positive payment history to reduce the impact a negative item will have.
2. Available Credit to Debt (30%)
This is how much credit do you have that is available. Are all your credit cards maxed out?
The bureaus like to see available credit. This shows them that you are a responsible user of credit.
3. Length of Credit (5%)
This means how long you have been making purchases using your credit. If you are a new credit user, you can still have a good score.
This factor carries very little weight. Furthermore your use of credit will age naturally, focus your efforts on more important areas of credit repair.
4. Credit Experience (5%)
What are you accounts on credit in? Do you only have credit cards?
The bureaus like to see diverse accounts. However this is such a small piece of your score that it is not worth opening up new accounts to show this.
With time your accounts will become diverse. You will have an auto loan, credit card, boat loan and etcetera.
5. Pursuit of New Credit (15%)
How frequently are you applying for new lines of credit? Are you continuously having your credit run?
If it looks like your credit is being checked continuously it will lower your credit score. The bureaus expect to see credit inquiries but excessive inquires will damage your score.
However there are individuals that literally open new lines of credit every month. These people will have their score lowered because there credit is constantly being checked.
These weight values are just estimates and not exact. Each bureau varies their scoring model and they choose to keep this information secret from the public. However by building positive payment history and removing negative accounts from your credit report you can increase your credit score dramatically. - 15465
1. Payment History (45%)
This is the area in which negative listings on your credit report are counted. It will help your score if you can remove all the negative listings.
If you are unsuccessful removing negative items you still can have a good credit score. It is rumored that after 4 years a negative item has much less impact on your score. Also you should build a positive payment history to reduce the impact a negative item will have.
2. Available Credit to Debt (30%)
This is how much credit do you have that is available. Are all your credit cards maxed out?
The bureaus like to see available credit. This shows them that you are a responsible user of credit.
3. Length of Credit (5%)
This means how long you have been making purchases using your credit. If you are a new credit user, you can still have a good score.
This factor carries very little weight. Furthermore your use of credit will age naturally, focus your efforts on more important areas of credit repair.
4. Credit Experience (5%)
What are you accounts on credit in? Do you only have credit cards?
The bureaus like to see diverse accounts. However this is such a small piece of your score that it is not worth opening up new accounts to show this.
With time your accounts will become diverse. You will have an auto loan, credit card, boat loan and etcetera.
5. Pursuit of New Credit (15%)
How frequently are you applying for new lines of credit? Are you continuously having your credit run?
If it looks like your credit is being checked continuously it will lower your credit score. The bureaus expect to see credit inquiries but excessive inquires will damage your score.
However there are individuals that literally open new lines of credit every month. These people will have their score lowered because there credit is constantly being checked.
These weight values are just estimates and not exact. Each bureau varies their scoring model and they choose to keep this information secret from the public. However by building positive payment history and removing negative accounts from your credit report you can increase your credit score dramatically. - 15465
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