Your credit score broken down
This number is broken into 5 categories:
History of paying back debts on time. (Accounts for approx. 35% of the score - 297.5 pts.)
- Primary trade line accounts including credit cards, retail store accounts, installment loans, finance company accounts, mortgage loans, etc.;
- Whether your late payments are 30, 60 or 90 days overdue.
- The amount owed during delinquency time and if account still has an outstanding balance;
- Collection items and public records, including judgments, bankruptcies, suits, liens and wage attachments. This can highly affect your rating even though older items will affect the score less than the most recent ones;
- Number of negative items compared to total amount of available credit. For example, 5 accounts with 3 late payments are worse than 10 accounts with 4 late payments. Accounts with no late payments will increase your rating substantially.
- Amounts owed (Accounts for approx. 30% of the score - 255 pts.) If you have a $10,000 limit on your card. Once you go over 30% or $3,333 for your balance - it will begin to negatively effect your score. Keep balances below 30%. Keep long standing accounts open. Closing accounts does not help and may actually negatively effect you.
- Length of Credit History (Accounts for approx. 15% of the score - 127.5 pts.) The longer the credit history, the better your credit score is.
- New Credit (Accounts for approx. 10% of score - 85 pts.) Applying for too much new credit can inadvertently drop your credit score. How many new establishing accounts you have, how long since you last opened an account and how many recent credit inquiries made by credit reporting agencies are all evaluated and considered.
- Types of Credit in use (Accounts fro approx. 10% of score - 85 pts.) Reviews the mix of mortgages, credit cards, installment loans, retail accounts and finance company accounts.