There are five pieces of information the credit bureaus use when calculating your score. Here is the list and the approximate value they carry into the bureaus scoring model.

1. Payment History (45%)

This is the area in which negative listings on your credit report are counted. It will help your score if you can remove all the negative listings.

If you are unsuccessful removing negative items you still can have a good credit score. It is rumored that after 4 years a negative item has much less impact on your score. Also you should build a positive payment history to reduce the impact a negative item will have.

2. Available Credit to Debt (30%)

This is your available credit versus the amount of debt you have. It will hurt your score if you are using all of your available credit.

The bureaus like to see that you have credit that is not being used. This says you are responsible in your use of credit.

3. Length of Credit (5%)

This means how long you have been making purchases using your credit. If you are a new credit user, you can still have a good score.

Do not worry about this aspect. Your use of credit will age naturally and this will not impact your score enough to make any concerted effort.

4. Credit Experience (5%)

What sort of accounts on your credit do you have. Do you only have an auto loan?

The bureaus like your credit file to be diverse. Do not worry about this because it is such a small part of your credit score.

You will naturally have diverse accounts with time. Your will open accounts such as; mortgage, credit card, car loan, boat loan and etcetera.

5. Pursuit of New Credit (15%)

How frequently are you applying for new lines of credit? Are you continuously having your credit run?

If it looks like your credit is being checked continuously it will lower your credit score. The bureaus expect to see credit inquiries but excessive inquires will damage your score.

There are people that try and make purchases with their credit every month. For those their score is going to be lowered because of that.

These weight values are just estimates and not exact. Each bureau varies their scoring model and they choose to keep this information secret from the public. However by building positive payment history and removing negative accounts from your credit report you can increase your credit score dramatically.

To learn more about how to improve credit score or learn about credit repair services visit us.

You can also read another article about how to remove civil judgments from your credit report.