Your payment history is a record of your payment behavior on all credit accounts, such as credit cars and loans. Make sure that you pay on time, every time.
Payment History Components
What goes into your payment history?
Credit payment history determines 35% of your FICO Credit Score.
Your utilization rate, or balance-to-limit ratio, is simply the total of your credit balances divided by the total of your credit card limits, generally expressed as a percentage.
Learn how to Calculate Your Credit Utilization: To determine your credit utilization, log in to each of your credit card accounts and gather the following information:
Add up the credit limits across all your cards, then separately add up the balances, too. Next, divide your total balance by your total credit limit, and multiply by 100 to get a percentage.
Make sure that you use no more than 30% of your available credit.
Credit Utilization determines 30% of your Fico Credit Score.
Age of credit history refers to the length of time you've been using credit. Look at the age of your oldest and newest accounts and the average age of all your accounts to determine the impact that age of credit history will have on your credit scores.
There are three primary ways of FICO scoring formula looks at your length of credit history:
The Age of Credit History determines 15% of your FICO Credit Score.
Refers to the types of accounts that make up a consumer's credit report.
Credit Mix determines 10% of your FICO Credit Score.
Credit inquiries are classified as either "hard inquiries" or "soft inquiries".
Only hard inquiries have an affect on your FICO score.
Soft inquiries are all credit inquiries where your credit is NOT being reviewed by a prospective lender. These include inquiries where you're checking your own credit, credit checks made by businesses to offer you goods or services (such as promotional offers by credit card companies), or inquiries made by businesses with whom you already have a credit account.
Hard inquiries are credit inquiries where a potential lender is reviewing your credit because you've applied for credit with them. These include credit checks when you've applied for an auto loan, mortgage or credit card. Each of these types of credit checks count as a single credit inquiry.
A FICO score takes into account only voluntary inquires that result from your application for credit. A FICO score does not take into account any involuntary inquiries made by businesses with whom you did not apply for credit, inquiries from employers, or your own requests to see your credit report.
Four examples of when to expect hard credit inquiries are:
Credit Inquires determine 10% of your FICO Credit Score.