4. New Credit: 10% of Score

Opening several new accounts or having many inquiries into credit history in a short period of time will affect the chances of qualifying for credit. The FICO system distinguishes between searching for new credit accounts and simply shopping around for lower interest rates.

Image of young person shopping

This factor evaluates the following:

New accounts. This considers the age of a consumer's newest accounts.

Recent credit history. If, after a period of late payments, the consumer has re-established their credit, the score will rise over time.

5. Types of Credit Used: 10% of Score

This factor does not usually play a big part in the lender's decision to extend credit; however, if there isn't much other information available, this element will become more important.

Image of young person with credit card / Credit card image

This factor evaluates the following:

The mix of credit cards, loans, finance accounts and mortgages the consumer is carrying.

These factors are all considered when establishing a consumer's credit score; no single component will determine the score. Depending on the information in the credit report, one element can play a more important role in the overall score, regardless of the percentage the particular factor contributes.