There are many factors influencing your credit score. Many people have a general sense of what makes up an individuals score but not many know the actual calculation and the weight placed on each factor affecting the rating. Recently a lender handed me off a list of the actual weight in each area:

The Factors that Affect Your Credit Rating - Weighted

• Your payment history makes up 35% (if you make your payments, hour score goes up)
• The amount outstanding on your credit makes up 30% (typically balances over 80% of the credit limit will negatively affect your credit score)
• The length of your credit history 10% (the longer the history, the better the score)
• Your new credit lines weight in at 15% (the amount of active lending facilities. The more active with good payment, the better the score)
• Type of credit you have is 10% (certain credit cards or lines of credit with certain lenders have a higher weight. For example, a Visa Credit Card holds more value in the scoring system than say a store credit card).

Keep in mind that if you pay out a credit card, it takes 30-60 days to update on your credit score.

As you look at the above rating, it makes the most sense to have great credit payment history without maximizing all your debt.