WHAT MAKES UP THE SCORE?

• 35% = based on payment history (i.e. on-time pays or delinquencies)
• More weight on current pay history
• 30% = evolving credit/proportion of balance to high credit limit
• 15% = length of credit
• 10% = mix of credit
• Installment (raises) vs. revolving (lowers)
• The more # of finance company loans, the lower the score

WHAT ACTIONS WILL HURT THE SCORE?

• Missing payments (regardless of $ amounts...it will take 24 months to restore credit with one late pay)
• Credit cards at capacity (i.e. maxing out credit cards)
• Closing credit cards out (this lowers available capacity)
• Shopping for credit excessively
• Opening up numerous trades in a short time period
• Having more revolving loans in relation to installment loans
• Borrowing from finance companies

WHAT DOESN'T AFFECT THE SCORE?

• Debt ratio
• Income
• Length of residence
• Length of employment

APPROXIMATE CREDIT WEIGHT FOR EACH YEAR

• 40% = current to 12 months
• 30% = 13-24 months
• 20% = 25-36 months
• 10% = 37 + months

HOW TO IMPROVE THE SCORE?

• Pay down credit card balances
• Do not close credit cards
• Continue to make payments on time (older late pays will become less significant with time)
• Slow down on opening new accounts