This Is How Credit Scores Are Calculated Your credit report details your credit history as it has been reported to the credit reporting agencies by lenders who have extended credit to you, by court records, collection agencies and by you personally. The credit reporting agencies analyzes information from the trade lines, inquiry, public records and collection sections of your credit report. They evaluate five categories in your credit report and compare them to consumers who have typical patterns in their past credit reports. They categories areas follows:

1. Types of credit in use — is it a good combination? 10% of the score

2. Amounts owed — is it too much? 30% of the score
  a.Risk indicators analyzed:
     i. Large outstanding balances
     ii. The ratio of balances to credit limits

3. Payment history — do you pay your bills on time? 35 % of the score
  a.Risk indicators analyzed:
     i.Severity – how bad are the delinquencies?
     ii.Recently – how recent are they?
     iii.Frequency – how many times did it occur?

4. New credit — do you have to much debt? 10% of the score
  a.Risk indicators analyzed:
     i.Number of inquiries and new account openings

5. Length of credit history — do you have established credit? 15% of the score
  a.Risk indicators analyzed:
     i.Age of trade lines - the age of the oldest account, the average age of accounts or both