Poor Credit Rating

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Payment history – 35% of a FICO score
You should always pay your credit accounts on time. Always remember that a good record of on-time payments helps your score. Bankruptcies and late payments can hurt your credit score so avoid them.

How much you bear – 30% of a FICO score
FICO scores check the amounts you owe on all your accounts. It also looks the total number of accounts and available credit you are using. The more you owe in comparison with your credit limit, your score will be lower.

Credit history length – 15% of a FICO score
Don’t forget that longer credit history always increase your score. Everybody knows that a short credit history can get you a high score if your credit report shows a good credit management.

New credit – 10% of a FICO score
When you applied for opening a new credit account, your credit score count it against rest of your credit history. If you are looking for a loan, do your rate shopping within a given period of time like in 30 days, to avoid lowering your FICO score.

Remain other factors – 10% of a FICO score
There are several minor factors as well which can affect your score. Like credit types on your credit report, mortgage installment and auto loan.