Although each credit bureau has their own algorithms to make up your credit score, the general factors are all the same, and are in order of most important.

• Making timely payments


• Debt to Credit Ratio


• Length of time or age of credit tradelines


• Types of credit (Installment or Revolving)


• Amount of New Credit

Paying your bills on time is the single most important factor in your credit score. Missing one payment can really knock your points down.

Your debt to credit ratio limits is next in the credit scoring algorithm. The more outstanding debt you have, compared to your total credit line will start to lower your score. Lenders want to see that you are not over extending yourself.

Next, the age of your credit. Your score goes up as you show you pay on time, year after year. Lenders know they can trust you, when you show that you can pay over time.

Auto loans and mortgages (installment loans) have a more powerful effect on your score as these are long term loans, that cover several factors, they show payment history, they are usually for 5-30 years so you get timely payments, plus you get the age of the tradeline.

New credit usually impacts your score negatively at first, having a lot of new credit will result in a red flag to lenders, as they may see you as more of a risk.