Credit Score's Five Major Factors

As stated previouslly, the formula for computing a credit score is complex and uses many factors other than your actual credit history report. Despite the complexity of the formula, we do know what the major components that drive the credit score outcome are. Once you understand this information, you will be in a much better position to control your credit score.

Here are the five major factors that go into calculating your credit score:

35% of a credit score is controlled by your Payment History
30% of a credit score is controlled by How Much You Owe
15% of a credit score is controlled by the Age of Your Credit
10% of a credit score is controlled by your Last Credit Application
10% of a credit score is controlled by the Type of Credit You Have

We will examine each one of the above factors in detail in the next sections. Make sure you understand them as this will be the foundation for improving your credit score.