Five different categories of information are taken into consideration when calculating your credit score, according to MyFICO. The bearing of each category on your score will depend on your specific circumstances. While a credit score is based only on information that is contained in your credit report, details such as race, gender, marital status and location are not used in the calculation of a credit score.
Payment History
Your payment history is worth 35 percent of your credit score. Payment history on your credit report details any late payments, including how delinquent the payment was and how long it has been since your last delinquent payment. It also will detail any bankruptcies, judgments, suits, liens or items in collection. If you have negative payment history -- especially recent history -- it can make it difficult for you to obtain new credit. On the positive side, accounts that have been reported by creditors as "paid as agreed" will also be detailed in the payment history.
Amounts Owed
The amounts you currently owe to each of your creditors will be used to calculate your credit score. Amounts owed are worth 30 percent of your credit score. The number of accounts you have, along with the proportion of the credit line you have used will determine part of your credit score. The less available credit you have, the lower your score will likely be because you could be considered a credit risk. If you already owe a substantial amount of money, it may be difficult for you to obtain more.
Credit History Length
The length of your credit history is important enough to warrant 15 percent of your overall score. The length of time each account you have has been open, along with the length of time that has elapsed since you last used a credit card account will be factored into the overall score. This area doesn't count as much as payment history and amounts owed because many creditworthy individuals may not have a substantial credit history.
New Credit
The amount of new credit you have received is calculated as 10 percent of your credit score. If you have recently acquired two new credit card accounts, your report will show that. If you try to obtain too much new credit at once, it can reflect poorly on you. This category can also work in your favor if you have recently opened a couple of accounts in an attempt to re-establish your credit history after a bad bout of credit problems. Again, this portion of your credit score is much less than the heavily weighted categories of payment history or amounts owed.
Types of Credit
The types of credit that you use in relation to how much of each type and the information related to each are also taken into account when figuring a credit score. Whether you use retail accounts, installment loans, credit cards, mortgages or consumer finance accounts will show up on your credit report. This category counts as 10 percent of your score.
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