Unlock the Mystery of Your Credit
What is your credit score based on?
| 35% - Past payment history |
30% - Balances |
| 15% - Credit History |
10% - Inquires |
10% - Types of credit in use
Payment History - Largest part of score 35%
* recent, frequency and severity of lates
* recent lates weighted more heavily
* 0-6 months - hardest hit, 7-23 months next
Balances - 30%
* revolving accounts are more weighted than installment accounts.
* balances over 30% of available credit will take points away.
* 1 card at high limit and 4 other cards at 0 balances hurt you.
* revolving and home equity lines larger than 25,000 hurt score.
* make sure all credit cards report credit limit correctly.
Credit History - 15%
* how long lines of credit have been open.
* lots of new accounts will hurt you.
* don't close open accounts - try to use them once a month.
Types of Credit - 10%
* do not use finance companies.
Inquiries - 10%
* lots of different kinds of inquires will hurt.
* several mortgage pulls are treated as one inquiry if pulled within 30 days of each other - it's ok to shop around.