Your credit score is determined by the information contained in your credit profile. It does not consider your employment, income, assets, or any specific demographic information about you. Credit scoring was developed as a unbiased method of considering only what is relevant in determining an individual's willingness to repay debt.

Your credit score will consider both positive and negative information contained in your report. Late payments will lower your score, but establishing or reestablishing positive payment history will raise your score. Your current loan balances, length of credit history, types of credit and credit inquiries are all considered when your score is calculated.

Each portion of your credit history affects your score, but not in equal amounts. Payment history is 35% of the total score. 30% is your amount of debt, compared to your available credit. The length of time account have been open and the type of credit both count for 15%, and inquires make up the final 5%.

In order for a score to generate, you must have at least one account that has been open for six months or longer, and at least one account that has been updated in the past six months. If you don't meet the minimum criteria for getting a score, establishing a credit history will be an important first step on the road to homeownership.

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