Several factors influence a credit score, including:
In addition to these factors, other factors that can influence a credit score include:
Credit mix: Having a mix of different types of credit, such as credit cards, loans, and a mortgage, can positively impact a credit score.
Credit age: The average age of your credit accounts can affect your score. Generally, older accounts show a longer history of responsible credit management and can positively impact the score.
Credit limits: The credit limits on your credit accounts can also influence your credit score. Higher credit limits can have a positive effect, while lower limits may indicate higher credit risk.
Debt-to-income ratio: This ratio compares the amount of debt you have to your income. A higher debt-to-income ratio can negatively affect your credit score.
Repayment behavior: Lenders may report late payments or delinquencies to credit bureaus, which can lower your credit score.
Credit utilization: This ratio compares the amount of credit you have available to the amount you are currently using. Keeping a low utilization ratio, typically below 30%, can positively impact your credit score.
Public records: Bankruptcies, tax liens, and other public records can have a significant negative impact on your credit score.
It is worth noting that credit scoring models can vary, and different credit bureaus may use different algorithms to calculate credit scores. This means that the importance and weight assigned to each factor can vary between scoring models and credit bureaus.