Late payments may lead to a lower score.
Understanding Your Credit ScoreAS YOU MIGHT EXPECT, PAYMENT HISTORY IS THE MOST INFLUENTIAL COMPONENT IN YOUR CREDIT SCORE, FOLLOWED CLOSELY BY THE AMOUNTS YOU OWE. TO LESSER DEGREES, THE LENGTH OF TIME YOU'VE UTILIZED CREDIT, THE NUMBER OF NEW ACCOUNTS OR INQUIRIES YOU HAVE, AND THE VARIOUS TYPES OF CREDIT ACCOUNTS YOU HOLD ALSO IMPACT YOUR SCORE. OVERALL REPORTING ALSO LOOKS AT HOW THESE FACTORS RELATE TO EACH OTHER IN THE CONTEXT OF YOUR PERSONAL USAGE.
Your Credit Score is determined by 5 factors of differing importance:
Less is more! Lowering debt can be the key to a better credit score.
Opening several accounts in a short time can lower your credit score.
Having experience with different types of credit (e.g., car loan and a credit card) can help your score.
A longer history of responsible credit use will likely lead to a higher score.