 TITLE: How to Maintain a Good Credit Score CONTENT: Understand How Your Credit Scores are Calculated\n------------------------------------------------\nYou'll be able to care for your credit score more skillfully if you know how it's determined. The somewhat tricky part is that you have multiple credit scores: There are two primary scoring systems, the FICO® Score☉ and VantageScore®, and each model receives periodic updates. There are also scores specific to certain industries, such as auto lending.\nDespite the differences between the scoring models, focusing on the same behaviors and scoring factors will build solid scores across the board. Since the FICO® Score 8 is the most commonly used by lenders, experts often recommend monitoring it as a way to gauge the overall strength of your credit.\nHere's what affects your credit scores:\n1.  Your payment record: The most important element in your score is whether you've paid your bills on time. Lenders want to know that you can be trusted to fulfill your debt obligations, and they consider payment history to be the best indicator: In the FICO® scoring model, it accounts for 35% of your score.\n2.  How much credit you're using: Next, your score takes into account how much available revolving credit—primarily with credit cards—you're currently using. So, for instance, if you have a $5,000 credit limit across all of your credit cards, and you have $2,000 in debt on those cards, you're utilizing 40% of your total available credit. This is also called your credit utilization ratio, and it accounts for for 30% of your FICO® Score.\n3.  How long you've had credit: The length of your credit history contributes to 15% of your FICO® Score. Your credit history goes back to the first loan or credit card you had in your name; if you were an authorized user on another person's account, that counts too.\n4.  Types of credit: The mix of credit you're using makes up 10% of a FICO® Score. Lenders like to see that you can manage a range of credit types, including both loans and credit cards.\n5.  New credit: When you apply for a new credit account, the lender requests access to your credit report via one of the credit bureaus. That request, known as a hard inquiry, gets listed on your credit report and stays there for two years. Generally, the more recent inquiries and credit accounts you have, the more concerned a lender may be that you're seeking to access more credit than you can manage. New credit accounts for 10% of your FICO® Score. END