This is the largest factor in determining your credit score. On time payments, late payments, or delinquent payments are all things that are taken into account. On time payments positively influence your credit, while late and delinquent payments can take a toll on your credit score. This is why it is important to pay all of your bills on time. Just one missed or late payment can have a negative influence on your credit
Having debt can both positively and negatively influence your credit. It can look good to have things installment loans (car payments, student loans) on your credit because it shows that you can handle making payments on time. But when it comes to revolving credit (like credit cards) it doesn’t look good to use all of your available credit. If you have a total credit limit of $10,000, and have $7,500 in debt, it doesn’t necessary look good to have more than half of your credit limit used. Using up most of your credit makes it look like you are overstretched financially.
This is another essential part of your credit score. It is good to show you have a long payment history of paying bills on time. Closing credit card accounts frequently can also negatively impact your credit. It is good to show that you have accounts with a solid payment history. If at all possible, keep credit cards open and just maintain a very low balance.
Every time you open a new credit card, your credit is pulled, and can ding away at your score. It is generally bad to open a lot of new cards in a short amount of time, especially if your credit history isn’t especially long. It is generally best to keep opening new accounts at a minimum.
Finally, your score is influenced by the amount of debt you have and how that debt is spread out of your overall credit. It is generally best to not have all the debt in one place. That is, it is better to have some student loans, a mortgage, and some minimal credit card debt, than one huge credit card debt. It shows that you can use your overall credit responsibly.