Factors Affecting Your Credit Score

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1. Thirty-five percent of your FICO credit score is determined by your payment history. Payments made on time increases your score while late payments severely hurt your score.
2. Thirty percent of your  score is determined by comparing the what you owe, to the amount of credit you have available. Lenders dislike seeing borrowers using too much credit, as statistics show these borrowers will either default or miss payments.3. Fifteen percent of your  score is based on the length of time in which you have had credit. It is important to note that closing accounts will reflect negatively on your account especially if they are your oldest accounts. Keep accounts open, even if you decide not to use them.
4. Ten percent of your  score is determined by new accounts. Each new account you open which will trigger a inquiry which in the short term will lower your score usually for 12 months.
5. Ten percent of your  score is based on the type of credit you use. Be sure to have a mixture of credit lines as Lenders frown upon too many of the same lines of credit.  This in their mines most likely will result in default or late payments

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