What Determines Your Score?

Your credit score represents your credit profile. Many factors go into your score, including income, assets, length of employment, length of residence in one place, education level and past credit record.

The three major credit reporting bureaus—Equifax, Experian and TransUnion—assign you a score based on the information they have on file. Your credit score is heavily determined by five pieces of information, with the most emphasis placed on the first two items:

1. Your payment history. Paying bills on time boosts your credit profile.
2. Amount you owe. The higher the debt load you carry, the lower your score.
3. Length of credit history. The longer your credit history, the higher your score.
4. New credit. Frequent credit applications or requests for your credit report by creditors raise red flags.
5. Forms of credit. Having different types of credit—installment loans, charge cards or lines of credit—is viewed positively.

Credit score numbers range from 300 to 850 and may vary by credit reporting bureau. Experts recommend that you check your credit reports and scores at least once a year to have any inaccurate information corrected.

Your credit score is not automatically included with your credit report; you must request it from the credit bureau. The cost to receive your score is generally around $20 or less.

Learn more at Credit Reports & How to Request Them.