As many as 1,000 different credit models exist. The most well-known are FICO and VantageScore. Credit scores are created by applying credit score models to credit record data from the credit bureaus.
All information in the credit records can play a role, but some elements are much more important than others. The five most important elements of the credit record which determine the credit score are:
- Payment record timeliness on all your open and closed credit accounts (35%)
- The current level of debt that you have. Credit utilization of revolving credit is particularly important (30%)
- Length of credit history (15%)
- Credit inquiries based on unique applications for credit from lenders or creditors in the past year (10%)
- Credit mix showing the ability to successfully manage different types of credit (10%)
The percentage associated with each element assumes that there are no significant or recent negative public records filings. Bankruptcies, leans, judgements and other such filings, will negatively impact your credit score and will reduce the benefit of any other elements for many years.