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Your credit score numbers are based on five factors which the three credit reporting organizations—TransUnion, Experion, and Equifax–consider the most instrumental in determining your credit score. These five factors, and a brief explanation of each as well as the percentage points they hold, are listed below:
* Payment History (35%): This is exactly what it sounds like. How often have you paid your bills on time, and how often have you made late payments? Have you defaulted on any loans? Have you ever declared bankruptcy, been taken to debtor’s court, had your wages garnished, or had other credit problems? These are just a few of the questions answered in the payment history category.
* Debt (30%): Again, this is very easy to understand. How much debt do you currently have? How many of these debts are still considered open, and how many have been paid off?
* Length of Credit History (15%): How long have you had credit?
* New Credit (10%): How recently have you opened a new account?
* Types of Credit Used (10%): This includes such things as installment loans, credit cards, mortgages, car loans, and other things.
What is one thing not used to determine your credit score? Your income.