What factors determine your credit score? By FederatedCreditCards.Com Copyright © 2008

35% of your score is your payment history. This is an important part of your credit score that takes a detailed look at weather you've made your payments on time for both current and past credit accounts such as credit cards, personal loans, and mortgages. The FICO analysis of your payment history will look at both the positive and negative aspects of your payment history. For example, how many accounts were paid on time per your agreement with no late payments being made. But it also examines how often payments were made late, by how many days was the payment late, and how long has it been since you've had a late payment. Any payment that was late by 90 days or more will have a more severe negative impact on credit than payments that were 30 or 60 days late. Obviously having any accounts that are currently being reported as delinquent will significantly lower you credit score until that obligation is cleared up.

30% of your score are the amounts of money you currently owe when the score is calculated. This will include debt from credit cards, car loans, mortgages, personal loans, and other loans you may have. The amounts you owe are considered in proportion with your current reported income. When installment or amortized loans are looked at the analysis considers what percentage of those has been paid and what percentage of the balance is still outstanding.

15% of your score is derived from the length of your credit history. This percentage of the credit score determines how long it has been since you started purchasing on credit. A successful track record of making payments per your agreements over a period of years establishes you as being a responsible person and less risky for lenders to deal with. Elapsed time since your credit accounts were first opened is an important aspect of this metric.

10% of your credit score is any additional credit that is pending. This may include recently approved loans or new credit cards you have just applied for and are awaiting a credit decision. Also, recent credit inquiries are considered in this measure. Lenders assume you are attempting to open other new lines of credit if you have had recent credit checks. The general ideal is to project whether the credit lines you will have open would exceed your means to make payments on time.

10% of your score is the variety of credit accounts you have with different people and companies. Though this percentage is a factor, it's not necessary that you maintain many types of credit to be accepted for a credit card, a loan or anything else. This percentage only truly becomes important when there is not enough information revealed by the other factors.

Your FICO or credit score considers all of these factors. Excessively late payments, those 90 days or more late can impact your credit score for up to seven years. Rebuilding your credit after having previous credit problems will have a positive impact on your credit score.