Understanding How Your Credit Score Grows
1. What Makes Up Your Score? 
•35% = Based on payment history (i.e. on-time payments or delinquencies) 
—>More weight on current pay history 
•30% = Capacity 
•15% = Length of credit 
•10% = Accumulation of debt in the last 12-18 months (# of inquiries) 
—>Opening dates 
•10% = Mix of Credit 
—>Installment (can raise) vs. Revolving (can lower) 
—>Finance company loans – can lower your score 
2. How Can You Improve Your Score? 
•Pay off or pay down on your credit cards 
•Do not close credit cards (capacity may decrease) 
•Move your revolving debt into installment debt 
•Continue to make payments on time (older late payments become less significant with time) 
•Slow down on opening new accounts 
•Acquire a solid credit history with years of experience 
3. What Actions Will Hurt Your Score? 
• Missing payments (regardless of $ amounts can take 24 months to restore credit with one late payment) 
•Credit cards at capacity (i.e. maxing out credit cards) 
•Shopping for credit excessively 
•Opening up numerous trades in a short time frame 
•Having more revolving debts in relation to installment debts 
•Closing credit cards out (could lower available capacity) 
•Borrowing from finance companies 
4. What Does Not Affect Your Score? 
•Debt ratios 
•Income 
•Length of residence 
•Length of employment 
5. Approximate Credit Weight for Each Year: 
•40% Current to 12 months 
•30% 13-24 months 
•20% 25-36 months 
•10% 37+ months