Five Key Factors in Credit Scores

So, what is the teacher looking for when grading your homework? There are five main

ingredients. This is the most important part of the video. If you understand

these five factors, you know the rules of the game. We’re going to use the FICO model percentages

here, as it's the industry standard. Ingredient Number 1: Payment History.

This is 35% of your score. This is the big one. It’s very simple:

Do you pay your bills on time? Lenders want to see a long history of "Paid as Agreed."

A single payment that is 30 days late can tank your score by a significant amount—sometimes

50 to 100 points instantly. It’s the equivalent of failing the midterm exam.