There is a certain emphasis on different variables in your credit report that vary depending on what the bureaus think is more important. On some variables, there are more emphasis than others. During an education course that I took regarding credit reports, they explained exactly what those percentages of emphasis were.
Here is what I found:
35% and the most emphasis is looking at “Payment History”. This is regarding paying your payments on time, and the most emphasis is on the last 12 months, and a little less emphasis on the previous 12 months. So, a late 11 months ago will effect your credit a little more negatively than one 23 months ago, and then beyond that there is much less emphasis on lates.
30% of your score is derived from your “Capacity”. Capacity refers to your ability to repay the debt. They way they can look at this is to see how much history of good standing you have on other debts you are paying on in your report. If you have little credit, their ability to evaluate your “capacity” is lacking.
15% of the score is from your “length of credit”. You may have a number of lines of credit, but if those lines of credit are all farely new, then you would receive a lesser score than someone that has a couple credit cards or loans with 8-15 years of depth in their credit.
10% is derived from “New Credit”. New credit is credit taken on in the last 12-18 months.
10% is derived from “Mix of Credit”. If you only have a couple of revolving credit debts or only installment debts, you are lacking a mixed variety of lines of credit. A perfect scenario would be that you have only a couple lines of credit that are revolving, and then have more of your debts as installment loans…installment loans are like car payment, and revolving debt is like credit cards. Other mixed credit examples are, car loan, mortgage, Dillard’s card, and a VISA, for example.
Hope this helps!