2) Amount of Debt/Available Credit (30%)- This section can hurt your credit score if your available credit is maxed out. The best situation is to have credit available, but only use it in small quantities.
3) Length of Credit History (15%)- The longer the credit history the better, especially if it is with the same credit issuer.
4) Mix of Credit (10%)- The greater the diversity in the type of credit is important. It is good to have both revolving credit (ex. credit card) and installment credit (ex. car or home loan). Consumers who have different types if credit are usually more experienced in handling money and are seen as less risky.
5) New Credit Applications (10%)- This section will have less impact the longer your credit history has been established. It is usually ok to shop around for loan rates for home and auto loans. If there are multiple inquiries within a short time period, these are usually combined into one inquiry. However, it can be viewed as a red flag if someone continually is applying for credit.
Originally Posted by Lisa VanderLoo 3/17/11