Sep 12, 2017

Your credit score is calculated by weighing different factors from your credit report.

According to Equifax, the most important factors that go into determining your credit score are:
• Payment history: What is your track record for making payments on time? This is the most important factor and makes up a large percentage of your credit score.

• Credit usage: How close are your balances to your credit limits?

• Amount of credit you owe: What are the balances on your credit accounts?
How much money you owe on your credit accounts can impact your score.

• Length of credit history: How long have you been building your credit history? The score tends to get better with time, which is why young people who have a very limited credit history tend to have lower scores.

• Searching for new credit: Are you looking to take on more debt? Your overall credit score will change every time you apply for and get new credit.

• Credit mix: What types of credit do you have? More diverse types of credit may have an effect on your score.
Knowing what goes into your credit score can help you monitor and improve it, if necessary.