Five Factors Affecting Your Credit

Five factors that affect your credit score:

Number one is, of course, payment history. This accounts for 35% of your credit score. The more consistent and timely you are with fully paying your bills and loans, the higher your credit score will be.

Two, and a close second, is credit use. This accounts for 30% of your credit score and going above and beyond the available credit limit will negatively impact your score because it's considered reckless financial behavior.

Three is the length of credit history. This accounts for a lot less: 15% of your credit score. And the age of your oldest account and your newest account will help determine how long you've managed these accounts, which could give banks a better idea of how trustworthy you are as a borrower.

Four is credit mix. This is less: 10% of your score. This is the type of accounts you have. Your credit mix breaks down into the following categories: credit cards, student loans, mortgages, and others.

And number five is new credit. This is the least amount, also 10% of your credit score, and if you have any new loans you've recently applied for, they won't negatively impact your FICO score if you pay them on time.

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