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1. Payment History (35%)

• This is the most important factor in your credit score. It tracks whether you pay your bills on time, including credit cards, loans, and other credit accounts. Even a single missed payment can negatively impact your score, while consistent, on-time payments help build a strong credit history.

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2. Credit Utilization (30%)

• This measures how much of your available credit you're using. It’s calculated by dividing your total credit balances by your total credit limits. A lower utilization rate (typically below 30%) is ideal, showing lenders that you manage credit responsibly without maxing out your limits.

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3. Length of Credit History (15%)

• This factor looks at how long your credit accounts have been open. A longer credit history demonstrates stability and experience with credit. It includes the age of your oldest account, the age of your newest account, and the average age of all accounts. Keeping older accounts open can help improve this score.

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4. Credit Mix (10%)

• Having a variety of credit types (e.g., credit cards, mortgages, auto loans, personal loans) shows lenders that you can manage different types of debt responsibly. A diverse credit portfolio can positively influence your score, but opening unnecessary accounts just to improve this factor isn’t recommended.

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5. New Credit Inquiries (10%)

• When you apply for new credit, lenders perform a hard inquiry, which can slightly lower your score. Multiple inquiries within a short period may indicate financial distress, making lenders wary. However, soft inquiries (like checking your own credit) do not impact your score.