5 Factors
How responsible you are in financial status?
How much each factor weighs? The factors that held the most weight are punctual payment and credit utilization.
Punctual payment – 35%.
1-year period – 1 late payment -> 11/12 = 92% (score) for 1 credit card
1-year period – 1 late payment -> 23/24 = 96% (score) for 2 credit card
credit utilization – 30%
$100/$100 = 100% utilization
$1/$100 = 1% utilization (GOOD)
Length of credit history – 15%
Average of your credit cards
Credit card A – 4 years, Credit Card B – 2 years. Average = 3 years.
total number of credit lines – 10%
more credit cards – Good
Number of credit inquiries – 10%
Less inquiries – Good
Reference
Graham Stephan. (2019, Oct 25). How to Get a Perfect Credit Score For $0 [Video]. Retrieved from: https://www.youtube.com/watch?v=Vn9ounAgG3w
