The higher your FICO® Score, the lower your perceived credit risk to lenders. Your score is made up of five key factors that are each weighted differently. These five factors are, in order of weight:
- Payment History (35%)
Determined by how well you pay credit accounts. This includes credit cards, mortgage, student loans, car loans and auto leases. Lenders like to see consistent, on-time payments and no delinquencies on all accounts. - Amounts Owed (30%)
Considers how much debt you already have and how much of your available credit you use. - Length of Credit History (15%)
Considers how long your accounts have been open. A longer credit history provides more payment history information that can be used to determine your FICO® Score. - Types of Credit/Credit Mix (10%)
Considers the mix of accounts you have, such as credit cards, retail accounts, other lines of credit and installment loans. - New Credit (10%)
This represents the frequency of credit inquiries and new account openings.