Description

1. Payment history: This is the most important factor, and it accounts for about 35% of your credit score. Lenders want to see that you have a history of making your payments on time.

2. Amounts owed: This factor accounts for about 30% of your credit score. It measures how much debt you have compared to your available credit.

3. Length of credit history: This factor accounts for about 15% of your credit score. Lenders want to see that you have a long history of responsible credit use.

4. Credit mix: This factor accounts for about 10% of your credit score. It measures the variety of credit accounts you have, such as credit cards, installment loans, and mortgages.

5. New credit: This factor accounts for about 10% of your credit score. It measures how often you apply for new credit. Lenders want to see that you are not applying for too much credit too often.

If you want to improve your credit score, there are a few things you can do:

• Pay your bills on time.
• Keep your credit utilization low.
• Minimize the number of hard inquiries on your credit report.
• Open and use credit accounts responsibly.
• Wait for negative items to fall off your credit report.