What factors influence my Credit Score?

Author: Gary Corriveau |

Each credit-reporting agency uses its own proprietary formula to calculate credit scores. Your credit score is calculated based on the following factors:

  • Past Payment History – Late or missed payments, overdue accounts, bankruptcies, and any written off debts will all lower your credit score 
  •  Credit Utilization – How much debt you have as a percentage of your available credit will also affect your credit score (You should try to use less than 35% of your available credit)
  • Credit History – How long you have had accounts open (the longer, the better)
  •  New Credit Requests – How recently and how often you have applied for new credit (checking your own credit score will not affect your score) 
  • Types of Credit – Having a mix of credit is best, such as a credit card, an auto loan, and a line of credit