TimesLeader.com

Breaking down credit scores

Your FICO credit score is made up of five factors of varying importance.

The weighted importance of the categories are averages. For some people — such as those who haven’t been using credit for long — certain categories may count more heavily.

Debt-to-credit-ratio: 30 percent

This measures your outstanding balance against your available credit. So if you have a lower credit limit but your balance remains steady — it will raise the ratio and probably lower your score.

Experts say it’s best to use less than 30 percent of your available credit. The lower the percentage the better.

Payment history: 35 percent

If you have any late payments, your score will take into account how late you were, how much was owed and how many late payments there were. If your overall report is strong, a few late payments shouldn’t be a score killer.

Length of credit history: 15 percent

If you’re closing credit card accounts, keep the card you’ve had the longest.

If you want to make sure your credit cards are counting toward your debt-to-credit ratio, you should use them at least once every six months or so. Otherwise, that account will show up as being inactive on your report and the credit line won’t be factored in.

New credit: 10 percent

Signing up for new credit cards doesn’t always boost your score because you’re adding to your line of credit. Instead, it can lower your score because you may appear to be a bigger risk.

Types of credit: 10 percent

This looks at whether you have a mix of different types of credit, such as installment loans or mortgages. It’s good to have a history of revolving accounts, such as credit cards.

Source: Fair Isaac Corp.