Before a consumer can contemplate effects on their credit score,
they have to understand what goes into calculating a credit
score and what weight is given the data being used to formulate
a credit score. Although all three consumer credit rating
bureaus use different formulas to calculate a credit score, in
general terms they use a formula incorporating the following
data at the weight values given: - 35% Payment history - 30%
Outstanding debt - 15% Length of time with credit accounts - 10%
New credit information - 10% Type of credit Main Cause of Change
As outlined above, the payment history on an account has a great
deal to do with the ultimate credit score. Over a third of the
value of a credit score is based on payment history. But this is
not reflective of only one account; it reflects the history on
all the accounts listed with the credit bureaus. If a consumer
has 10 credit reporting accounts and only one of those accounts
reports a payment being made late, the overall effect will be
pretty small. How