Here are 5 factors of how your score is calculated:

  1. Payment history – never be late, always pay one time.
  2. How much you owe – keep your debt low. High balances impact negatively. You look risky to
  3. Credit history / age of credit – shows how responsible you are and the amount of time you spent building your credit. The older your credit gets, the better.
  4. Credit type – a mix in your credit is important. From mortgages, credit cards, to car loans it shows you have experience in different types of loans making you less risky to lenders.
  5. Recently opened accounts – creditors want to know where you’re looking for credit. They want to know who is giving you credit and when. Too many inquiries can mean you may be in financial trouble and are using debt to supplement your income.

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