Factors that Determine Credit

Five main categories determine your credit score: payment history, amounts owed, length of credit history, types of credit used, and new credit. Each has its own bearing on your overall rating. There are general percentage breakdowns, but each case is different.

In general, payment history makes about 35 percent of your score. It includes the payment information on certain accounts, including retail accounts, credit cards, mortgage, etc. It also reflects adverse public records like bankruptcy, liens, suits, and more, as well as past due and collection items. The severity of delinquency is also a factor, as is the amount past due. The number of accounts paid according to agreement is also recorded in the payment history.

The amounts you owe makes up about 30 percent of your credit score. This includes amounts owed on accounts, number of accounts with balances, proportion of credit lines that are used, as well as the proportion of loan amount installments that are still owed.

The length of credit history is another determinant. It reflects the time since accounts have been opened and the time since an account shows activity. This category makes up around 15 percent of your overall score.

The new credit category makes up around 10 percent. It indicates the number of accounts that are recently opened, as well as the number of recent inquiries concerning your credit. The time since recent account openings and credit inquiries is also considered, as is the rebuilding of positive credit status since past problems.

The types of credit used also makes about 10 percent of your score. It includes the amount of the various types of accounts you have, including retail accounts, mortgage, loans, credit cards, and more.