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Most important factors in determining a Credit score. Typically, your Credit score is most influenced by two factors: how you pay your debts and how much debt you owe. For example, late payments on loans, a past bankruptcy, debt collections or a court judgment ordering you to pay money as a result of a lawsuit will negatively affect your Credit score.
Lenders want to be sure that the debt you owe is manageable. One example: Lenders get concerned if you have a significant amount of debt compared to your income—say, if what you owe each month on all loans and credit cards exceeds one-third of your monthly income.
Other factors that can affect your Credit score include how long you've used credit, how often you've applied for new credit and whether you've taken on new debt.
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