What 5 factors are taken into account when calculating a credit score?

Credit scores can vary depending on the credit scoring models used and the information reported by lenders to different credit bureaus. One person can have many credit scores because lenders report to different credit bureaus and these bureaus may use different scoring models to calculate your credit score. Each scoring model can give different levels of importance to different factors while deciding your score. However, these are the five factors that the most common scoring models–VantageScore® and FICO®–look at to decide your scores.It’s important to note that each company may prioritize one factor over another.

1. Payment history: This factor reflects your past payment behavior, including whether you have consistently made payments on time and kept your credit card bills up to date. It is one of the most important factors in determining your credit score. 35% of your FICO score is your payment history and it is also moderately influential on your VantageScore. 
2. Amounts owed: This factor pertains to your credit utilization, which means the amount of credit you are currently using compared to the total credit available to you.The total balance on your credit cards, the amount of credit you have used, and the amount of credit that is available to you make up this category accounts for 30% of your FICO score and is extremely influential on your VantageScore. 
3. Length of credit history: This is the average age of your credit accounts. Newer accounts reduce the length of your credit history. This makes up 15% of your FICO score but is less influential on your VantageScore.
4. Credit mix: The different types of accounts you hold, such as loans, installment loans, credit card loans, education, and mortgage loans. Having a diverse credit mix is beneficial for your score since lenders and credit scoring companies interpret it as a positive sign of experience and capability in managing various types of debt. This is highly influential on your VantageScore but only accounts for 10% of your FICO score. 
5. New credit: This factor considers whether you have recently opened new credit accounts or applied for credit. New credit is less influential on your VantageScore and also counts for only 10% of your FICO score.

Although these are the factors that are considered to calculate your credit score, it’s important to note that loan and credit card approvals take into account factors other than your credit score, such as your debt-to-income ratio and employment status.