The five main factors that determine a credit score are: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and types of credit used (10%). Some key tips for maintaining a good credit score include keeping credit card balances below 50% of the limit, not closing old credit card accounts, having a mix of installment and revolving accounts, avoiding late payments, and not applying for new credit if planning a major purchase soon.

1. www.andorracreditrepair.com

2. The Five Factors of Credit Scoring
• Capacity
Length of
Credit
• Length of Credit History History
15%
Capacity
30% Types of
• Types of Credit Credit
10%
New
• New Credit Credit
10%
• Payment History Payment
History
35%

3. Capacity
• Revolving Credit Cards
Length of
Credit
• Balances under 50% Capacity
History
15%
30%
Types of
• Optimum is 30-35% Credit
10%
New
• Credit Score Impact Credit
10%
Payment
History
35%

4. Credit Tip #1
• Keep all your credit card balances below 50% (30% is
optimal) of the available credit limit.
• Your credit score could lose as much as 30-60 points if
your credit cards are maxed out. Even if you are paying
on time.
Capacity

5. Credit Tip #2
• It is not okay to max out your credit cards even if you pay
the balance in full every month.
• The credit bureaus will only report the high balance and
it will adversely affect your credit score.
Capacity

6. Length of Credit History
Length of
• Building Credit History Credit
History
15%
• Closing Credit Cards
Capacity
30% Types of
• Credit Score Impact Credit
10%
New
• Authorized User Account Credit
10%
Payment
History
35%

7. Credit Tip #3
• Never close an old account. Part of your credit score is
based on how long you have established credit.
• Therefore, if you close an older credit card (perhaps
because you now have a card with a lower rate) you will
decrease your FICO score

8. Credit Tip #4
• Intermittently use all of your credit cards so they will not
become inactive and cancelled by the credit card
company or not reported to the credit bureaus because
of inactivity

9. Types of Credit
• Installment
Length of
Credit
• Mortgage History
15%
Capacity Types of
30% Credit
• Revolving 10%
New
• Proper Mix of Accounts Credit
10%
Payment
History
35%

10. Credit Tip #5
• If you have no open trade lines you will have a credit
score of N/A.
• You should have, at a minimum, 3 open trade lines at all
times.

11. Credit Tip #6
• A secured credit card can help build credit. For more
information go to www.andorracreditrepair.com for a list
of secured cards.

12. New Credit
• Opening New Accounts
Length of
Credit
• Pulling your Credit History
15%
Capacity
30% Types of
• Purchasing a Vehicle Credit
10%
New
Credit
10%
Payment
History
35%

13. Credit Tip #7
• You may boost your credit score by opting out of the
prescreened credit offers received in the mail.
• Go to www.optoutprescreen.com and opt out for 5 years.

14. Credit Tip #8
• If you are planning to get a loan in the next few months
do not try to open any new accounts or get any new
credit cards.

15. Payment History
• 30 Day Late Payments
Length of
Credit
• Charge Offs & Collections History
15%
Capacity
30% Types of
• Short Sales & Foreclosures Credit
10%
New
• Tax Liens & Judgments Credit
10%
Payment
History
35%

16. Credit Tip #9
• Never pay 30 days late on an open account.
• One 30 day late payment will drop your credit score 100
points OVERNIGHT!
• This takes at least 12 months to recover from.
Payment
History

17. Credit Tip #10
• DO NOT pay off collections that are over 24 months old.
This will update the DLA and it will end up lowering your
credit score.
• DO pay off anything that has come on in the last 24
months. This will improve your credit standing.
Payment
History