How Is Credit Score Measured?

Your credit score is a three-digit number that creditors and lenders use to determine your creditworthiness. Credit scores are based on information within your credit report -- a document maintained by credit bureaus detailing your credit and loans accounts and your unpaid bills. Five key pieces of information are used to measure your credit score: payment history, amount of debt, length of credit history, types of credit and new credit accounts.

Payment History

Payment history is 35 percent of your credit score. This measures your payment history on your credit cards, loans, mortgages and other credit accounts. Any public records like bankruptcy, foreclosure and tax liens will hurt your credit score. The number of past due accounts and number of accounts that are "paid as agreed" are factored into your credit score.

Amount of Debt

The amount of debt you owe is 30 percent of your credit score. The total amount you owe on all your accounts is considered, as is the number of your accounts that have balances. Your credit-to-debt ratio, which measures how much of your available credit, contributes to this part of your credit score.

Credit Age

Length of credit history is 15 percent of your credit score. This considers the amount of time since your first account was opened and the time since each type of account was opened. For example, the time since your first credit card and your first installment loan are used to measure your credit score. The length of time since your last account activity is added to your credit score.

Types of Credit

Types of credit used is 10 percent of your credit score. This looks at the number of each type of account you have. Types of credit accounts include bank credit cards, retail store credit cards, mortgage loans and student loans.

New Credit

New credit accounts are 10 percent of your credit score. This measures the number of accounts you've recently opened as well as the number of accounts you have that are new. Any recent credit inquiries made based on your application for a credit card or loan will help measure your credit score. The amount of time that's passed since you've opened your last account or had your last credit inquiry will influence your credit score.

Features

All five categories of information are used together to measure a credit score. Only the information in your credit report is used to calculate your credit score, so your credit score will change as the information in your credit report changes.