Question

Which of the following impacts your credit score the most?

O Types of credit
O Length of credit history
O Amounts owed
O Payment history
O New credit
All of the above

Answer 1

Payment history impacts your credit score the most.

Step-by-step explanation:

Out of the given options, Payment history impacts your credit score the most. Payment history refers to your track record of making payments on time and in full. It accounts for 35% of your credit score and is the most important factor in determining your creditworthiness.

The other factors mentioned which are the types of credit, length of credit history, amounts owed, and new credit—are also important in calculating your credit score, but they have a relatively smaller impact compared to Payment history. To maintain a good credit score, it is crucial to make all your payments on time and avoid late payments or defaults.

Answer 2

Payment history, amounts owed, and length of credit history significantly impact your credit score.

Step-by-step explanation:

The most important factor that impacts your credit score is payment history. This refers to whether you consistently make your payments on time or if you have a history of late or missed payments. It accounts for about 35% of your credit score.

The second most significant factor is amounts owed. This reflects the amount of debt you currently have, particularly in relation to your available credit limits. It contributes to around 30% of your credit score.

The third factor is length of credit history. This looks at how long you have been using credit. The longer your credit history, the better it is for your score. It makes up about 15% of your credit score.

Learn more about Factors that impact credit scores