Your credit scores are determined by several factors, such as whether you pay bills on time and the length of time you’ve used credit. Understanding what factors affect credit scores helps you plan the most effective way to build your credit or protect it.

What are 5 ways your credit score is used besides getting a loan?

5 Ways Your Credit Score Is Used Other Than Getting a Loan

• Landlords. When you rent an apartment, landlords want to make certain you’re going to be responsible with paying the rent.
• Utility companies.
• Cell phone companies.
• Your car insurer.
• Your employer.
• You need to earn a good credit score.

What makes up 35% of credit score?

Your credit score is based on the following five factors: Your payment history accounts for 35% of your score. This shows whether you make payments on time, how often you miss payments, how many days past the due date you pay your bills, and how recently payments have been missed.

What are the factors used to calculate a credit score?

The FICO scoring system is used by many financial institutions. Factors considered in credit scoring include repayment history, types of loans, length of credit history, and an individual’s total debt. One metric used in calculating a credit score is credit utilization or the percentage of available credit currently being used.

What do Lenders look for in a credit score?

The higher the score, the better a borrower looks to potential lenders. A credit score is based on credit history: number of open accounts, total levels of debt, and repayment history, and other factors. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner. 1  2 

What do you need to know about FICO credit score?

The final thing the FICO formula considers in determining your credit score is whether you have a mix of different types of credit, such as credit cards, store accounts, installment loans and mortgages.