Credit scores are calculated based on a variety of factors. Here are some of the most important factors that affect your credit score:

Factors Affecting Your Credit Score

1. Payment History: Your payment history is the most important factor affecting your credit score. Late payments, missed payments, or defaulting on a loan can all have a negative impact on your credit score.

2. Credit Utilization: This is the amount of credit you are using compared to the amount of credit you have available. High credit utilization can negatively impact your credit score.

3. Length of Credit History: The longer your credit history, the better your credit score. This is because lenders want to see a long history of responsible credit use.

4. Types of Credit Used: Having a mix of different types of credit, such as credit cards, loans, and mortgages, can have a positive impact on your credit score.

5. New Credit: Opening new credit accounts can have a negative impact on your credit score, especially if you open several accounts within a short period of time.

Understanding these factors can help you make informed decisions about how to improve and maintain your credit score.

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