WHAT MAKES UP A CREDIT SCORE ?

The Algorithm That Makes Up Your Credit Scores:

35% payment history

30% utilization

15% age of credit

10% new credit

10% types of credit accounts

Here are the points broken down:

Payment History: 192 points possible

Payment history is of course the biggest factor in your credit profile. It is worth up to 192.5 points total. This means you would need to have at least a 100% payment history for more than 12 consecutive months to earn all 192.5 points in this category.

If you have a 97-99% Payment history, you are likely earning around 150+ points

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Credit Utilization: 165 points possible

Credit utilization is worth up to 165 points. This number is calculated based on the overall utilization you are reporting among all of your open credit cards.

To earn all 165 points in this category, you need to report a utilization between 1-3% consecutive for over 6 months.

If you do not have an open/active credit card you will not gain A single point in this category.

Utilization over 30 will cut these points nearly in half.

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Credit Age: 82.5 points possible

Your credit age is the average age your accounts have been opened. This means anytime you close an account, get an account deleted, open a new account you will lose credit age. The older an account is when deleted, the more points you will lose in this category.

It is believed you gain all 82.5 points with an average credit age of at least 12+ years. (This is why most young adults will not have an 800+ credit score without being an authorized user on a seasoned account)

This section is also why your credit score can and most likely will decrease as you are repairing it and getting those deletions. (It is expected)

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Inquiries: 55 points possible

Inquiries have little effect on you score-wise. Each hard inquiry will affect this section, soft inquiries do not affect this section.

More than 3 inquiries will forfeit more than half of these 55 points.

Because this section is only worth 55 points, it is completely possible to still have great credit with the presence of inquiries.

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Credit Mix: 55 points possible

The mixture of account types is what affects this section. So, if you only have 1-2 account types you will likely lose most of the points. Lenders like consumers to display responsibilities from different types of accounts.