40% is based on your payment history.
- Are you making your payments on time?
- Have you ever been 30, 60 or 90 days late?
and if so, how many times?
32% is based on revolving credit history.
-How much credit you have...
18% is based on the length of established credit.
- It is crucial that you do not close your accounts.
- Your credit score is based on all available credit
vs. all credit debt...
10% is based on new credit.
- It is important to continue to grow your credit
*Have several credit cards; It doesn't mean that you have to use them, but have them so that your total available credit is high.
*If you make around $50K a year, try to have 4 credit cards. If you make $100K a year you should have more than 6.
*Don't put everything on one card; spread the charges out and keep the balance under 50% of the available credit as this will help your score. Don't ever use all the available credit on one card even if you pay off the full amount each month; it will still hurt your credit score during the month it was maxed out.
*If you have a card that is about to expire, the credit card company may not send you a new card and just close the account because of "lack of use". Do not let them do this. Mark on your calendar when your cards are to expire and make sure you call them and ask for new cards.
*Keep in contact with the credit card companies, loan companies, and mortgage companies. Everytime you call they capture that in their computer system. They are more willing to work with people who are in communication with them.
*Pull your credit report every month and work hard to remove all negative items. Keep copies of all the paperwork that was provided in order to remove the negative remarks from your credit in a folder as they may reappear on future reports.
*Every Quarter try to get your credit limit increased and your interest rate lowered.