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Top 7 Factors that Affect Your Credit Score

1. Many different mathematical formulas are used to calculate credit scores and each credit reporting agency provides different credit scoring models. For example, Equifax is the exclusive provider of the FICO Score, which is used by most lenders. While most credit scoring models are based on the following factors, each scoring model weights factors differently:
2. Payment history. This, along with public records, generally accounts for approximately 35% of your credit score. A record of late payments on your current and past credit accounts will typically lower your score. Being consistent about paying on time can, over time, have a positive impact on your credit score.
3. Public records. Matters of public record such as bankruptcies, judgments, and collection items may lower your credit score. Be aware of these, even if you can't always avoid them.
4. Length of credit history. In general, a longer credit history is better and can sometimes have a positive impact on your score. Credit history typically accounts for around 15% of your credit score.
5. New accounts. Opening multiple new accounts in a short period of time may negatively impact your score.
6. Inquiries. Whenever someone else gets your credit report — a lender, landlord, or insurer, for example — an inquiry is recorded on your credit report. A large number of recent inquiries may negatively impact your score. Your new credit accounts and inquiries generally make up about 10% of your score.
7. Accounts in use. The presence of too many open accounts can have a negative impact on your score, whether you're using the accounts or not. This activity usually makes up approximately 10% of your score.

FICO Score Information

FICO stands for Fair Isaac Company, an organization that established an equation to represent your creditworthiness in a three-digit number. Your FICO® Score — the credit score that lenders use most — helps determine the interest rate and terms you're likely to receive on loans.

Equifax is the only major credit reporting agency that can provide your FICO Score. Other credit bureaus offer other types of credit scores that lenders may not take into consideration when making a lending decision.