One of the services that monitors my credit is with US Bank. While I don’t pay a lot of attention to it because my score is always above 800, I decided to look more closely one day.

And I found this handy chart that describes what a credit bureau looks at in determining the credit score:

What impacts your credit score

The factors that determine your score are:

  1. Payment history 40% – extremely high impact
  2. Credit usage 20% – high impact
  3. Age of credit 21% – high impact
  4. Balances across all accounts 11% – moderate impact
  5. Recent credit checks 5% – low impact
  6. Available credit 3% – low impactTotal: 100%

As you can see from the above, 81% of your credit score is about how you pay on time, how close you are to your credit limit, and how long you’ve had your accounts.

With 40% of the score based on paying your creditors timely, this is the most important.

Are you monitoring your credit report and usage?

To Your Prosperity,