There are two main things everyone must do in order to have good credit scores, regardless of the credit scoring model being used. The first is to pay all your bills on time, every single time. This applies not only to your credit cards, mortgage and car loans, but also to things like your utility bills and cell phone bills.
The second is to keep your balances as low as possible on your credit cards The lower the balance on your card, the better. If you have a credit card, it's best to pay it in full every month. If you carry a balance on your credit card, you never want it to be greater than 30 percent of your credit limit on that account. That's the maximum. The lower your percentage of balances as compared to your credit limits, the better.
For most credit scoring systems, your payment history and utilization rate will account for between 60 percent and 70 percent of the total.
The rest of your credit score depends on several other factors that build on the first two. The length of your credit history and the mix of types of credit you have had, how you have used credit recently, including whether you've applied for new credit, paid off accounts, and increased or decreased your debt.
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Scoped on: 07/05/2016