Please ensure Javascript is enabled for purposes of website accessibility

These 5 Factors Determine Your Credit Score

By John Maxfield – Updated Feb 15, 2017 at 11:38AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

How are credit scores determined? The answer is much simpler than you might think, as there are only five factors that influence the calculation.

No credit score is too high. Whether yours is 550 or 790, there's always room for improvement. But how does one go about raising it?

The answer is much simpler than you might think. This is because credit scores don't materialize out of thin air. There's rhyme and reason to them.

By uncovering how your credit score is calculated, you tilt the odds of a great score in your favor. That is, you can make the process work for you, as opposed to against you.

So how is your credit score determined? As I discuss in the following presentation, there are five things that influence the calculation. As a result, all you have to do is master these five simple variables in order to achieve an exceptional score.

Are you sick of paying higher taxes?
Tax increases that took effect at the beginning of 2013 affected nearly every American taxpayer. In our brand-new special report "How You Can Fight Back Against Higher Taxes," The Motley Fool's tax experts run through what specific common pitfalls to watch out for in doing your tax planning this year. Click here to get your copy today -- it's absolutely free.

We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.