Payment history is the most important ingredient in credit scoring, and even one missed payment can have a negative impact on your score. Lenders want to be sure that you will pay back your debt, and on time, when they are considering you for new credit. 

 

Amounts owed Your credit utilization ratio is calculated by dividing the total revolving credit you are currently using by the total of all your revolving limits. This ratio looks at how much of your available credit you’re utilizing and can give a snapshot of how reliant you are on non-cash funds. Using more than 30% of your available credit is a negative to creditors. 

 

Length of credit history This includes the age of your oldest credit account, the age of your newest credit account and the average age of all your accounts. Generally, the longer your credit history, the higher your credit scores.

 

Types of credit used People with top credit scores often carry a diverse portfolio of credit accounts, which might include a car loan, credit card, student loan, mortgage or other credit products. Credit scoring models consider types of accounts and how many of each you have as an indication of how well you manage a wide range of credit products. 

 

New Credit The number of credit accounts you’ve opened, as well as the number of hard inquiries lenders make when you apply for credit. Too many accounts or inquiries can indicate increased risk, and as such can hurt your credit score.