FICO: J.R. Spies with The Mortgage Link has provided this information about FICO scoring:
It is important to note that raising your FICO credit score is a bit like losing weight. It takes time and there is no quick fix. In fact, quick fix efforts can backfire. The best advise is to manage credit responsible over time.
What's in your credit score:
35% = Payment History
30% = Amounts Owed
15% = Length of Credit
10% = New Credit
10% = Types of Credit Used
* Pay our bills on time
* Keep Credit Balances at less than 30%
* Don't Close out your accounts
* Get New Credit if you don't have any
* Don't get new credit if you are new to credit
* Keep at least 3 to 4 active accounts
* Have a good credit mix (Mortgage, Auto, Installment, Revolving)
The importance of any factor depends on the overall information in your credit report.
Note:
Pay your credit on TIME! Recent late on $200 credit card is much worse than a $3,000 collection paid 3 years ago.
It is better to have some five accounts at less than 30% balance than to have 1 account at 100% balance.
It is better to have 5 credit cards with 50% balances than to have no accounts at all.
It is better to have recent inquiries and new accounts than to have no credit at all.
It is better to keep the credit you have and slowly add new accounts than to radically add 4 or 5 new accounts. New accounts will lower your average account age.
The FICO scores read types of credit and give a higher weight to the more important type of credit - Mortgage, Auto, Installment and Revolving.
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