Your credit score is broken down into 5 parts:
- Past Credit History & Payment Habits
- Credit Capacity
- Time since you established your credit
- A mix of credit between installment loans and revolving credit
35% - Past Credit History & Payment Habits – If you haven’t always paid your bills on time don’t worry – the majority of your score is based on the last 12 months. Within a year, a regular payment history will help you improve your score.
30% - Is based on your credit capacity or the amount of credit you have access to, but don’t use. For example, if you have a credit card with a $5,000 limit, but you have a balance of only $500, you demonstrate the ability to hold credit while using self-control.
15% - Is based on the length of credit or the amount of time since you established your credit.
10% - Is based on the amount of debt you’ve accumulated in the past 12 to 18 months including the number of times you’ve inquired about credit (applying for credit cards, department store credit, auto financing…etc.), and the date the new credit was opened.
10% - Is based on a mix of credit between installment loans (personal loans for a fixed amount) and revolving credit (credit cards with reusable lines of credit). The number of finance company loans also affects your credit, the more finance company loans, the lower your score.