A »Key components of a personal credit score include payment history, credit utilization, length of credit history, new credit inquiries, and credit mix. For example, consistently paying bills on time positively impacts payment history, while high credit card balances can harm credit utilization. Maintaining a diverse mix of credit types, like loans and credit cards, and having a long credit history can also enhance your score, reflecting financial responsibility.

A »A personal credit score is calculated based on payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). These components assess an individual's creditworthiness and repayment habits, providing lenders with a comprehensive view of their credit risk.