What Makes Up Your Credit Score?

Curious about what impacts your credit score? Let's take a deep dive into the five main components that make up your FICO® Score Calculation:

Payment History (35%)
Your past payment behavior influences lenders' perception of your creditworthiness. Consistently making on-time payments keeps accounts in good standing and helps establish a solid credit history.

Amounts Owed (30%)
Having credit accounts and owing money on them is not a bad thing. It could actually be good to have a balance on your credit cards & other accounts. However, using a significant portion of your available credit can make you appear more likely to miss payments, making you a higher-risk borrower.

Credit History (15%)
The length of time you have had your credit accounts is significant. Although having a longer credit history generally results in higher credit scores, a shorter history doesn't necessarily mean a lower score if the other factors are strong.

New Accounts (10%)
Opening a new account isn't bad per se, but opening several accounts in a short period can raise red flags for lenders, particularly if your credit history is brief.

Credit Mix (10%)
The types of credit accounts you have impact your credit score. Credit cards, retail accounts, installment loans, finance company accounts, and mortgages are all included in the mix. However, having one of each type is not necessary, and you should not worry if you do not have them all.

In summary, keep your accounts in good standing, make timely payments, and maintain a healthy mix of credit accounts to keep your credit score in good shape.

Source: https://www.myfico.com/credit-education/whats-in-your-credit-score