These 5 Factors Are What Actually Matters When It Comes to Your Credit

The source provides an extensive breakdown of the five primary components that determine a person's credit score, emphasizing its critical role in financial stability and opportunities. It identifies the most influential factor as Payment History (35%), detailing the negative impact of late or missed payments and offering solutions like setting up automatic payments. Following closely is Credit Utilization (30%), which measures the amount of debt relative to available credit and suggests keeping this ratio below 30% for an optimal score. The remaining factors are the Length of Credit History (15%), the Types of Credit (10%) managed, and the volume of New Credit Inquiries (10%), with the text advising readers on how to responsibly manage each component to improve their overall creditworthiness.