Following are the five factors that determine a borrower’s credit score:

1) Payment History

  • Payment information on many types of accounts
  • Public record and collection items
  • Details on late or missed payments — specifically:
    • how late they were
    • how much was owed
    • how recently they occurred
    • how many there are

2) Amounts Owed

  • Amount owed on all accounts
  • Amount owned on different types of accounts
  • Whether you are showing a balance on certain types of accounts
  • How much of the total credit line is being used
  • How much of installment loan account is still owed

3) Length of Credit History

  • How long your credit accounts have been established, in general
  • How long specific credit accounts have been established
  • How long it has been since you used certain accounts

4)  New Credit & Inquiries

  • What kinds of credit accounts you have and how many of each
  • Total number of accounts you have

5)  Types of Credit

  • How many new accounts you have
  • How long it’s been since you opened a new account
  • How many recent requests for credit have you made