What is your credit score made of?

Pay your bills on time and you will have perfect credit. Not exactly. That is a common misconception of credit scoring. Your score is the result of a formula computed by the Fair Isaac Company. It consists of payment history (35%), debt level(30%),age of credit history(15%),number of credit inquiries(10%) and mix of credit(10%).To gain the best score you want to have multiple types of credit, keep low balances on your credit cards and only add new credit as needed. You want to avoid credit inquiries, late payments, collections, judgements and bankruptcies as these all have a negative impact on your score.