What makes up a credit score? The formula that creates your three-digit credit score is based on 22 different criteria. These 22 criteria, which interweave to create the intricate formula, can be categorized into five parts.

What Makes Up a Credit Score? Part 1: Your Payment History

Your payment history is the single most important part of your credit score. A full 35 percent of your credit score is determined by such factors as:

• Whether you pay your bills on time
• Whether you have collections on your account
• The presence or absence of repossessions, bankruptcies, and foreclosures.

That said, some payment activity is more important than others. Learn which is which!

What Makes Up a Credit Score? Part II: Outstanding Debt

The second most important part of your credit score is the amount of outstanding debt you have. About 30 percent of your score is determined by:

• Something called a “utilization rate.” And having a utilization rate that is too high will hurt your score!
• The balance of a loan as a ratio of the original loan amount.

What Makes Up a Credit Score? Part III: The Age of Your Credit

In short, old is good. The length of time you have had credit affects about 15 percent of your credit score, with older accounts faring better than younger accounts. When considering the age of your credit score, learn why you should never close accounts, and how to be strategic about opening new accounts.

What Makes Up a Credit Score? Part IV: The Type of Credit You Have

Ideally, you would have a three to five credit cards, an installment loan, and a mortgage on your credit report. Credit scores with a healthy mix of credit, and no types of harmful credit, will be higher than those with too little, too much, or the wrong kind of credit. About 10 percent of your score is determined by the type of credit you have.

What Makes Up a Credit Score? Part V: Credit Inquiries

Too many credit inquiries will hurt your score. That said, many consumers never pull their own credit report for fear of adding another credit inquiry. But this mindset stops them from taking proactive measures to build their credit. If you pull your credit score from the right place, you will not hurt your credit.

What makes up a credit score? Be sure to read the details about these five components

What makes up a credit score? Component #1: Your payment history.

What makes up a credit score? Component #2: Outstanding debt.

What makes up a credit score? Component #3: The age of your credit.

What makes up a credit score? Component #4: The type of credit you have.

What makes up a credit score? Component #5: Credit inquiries.