Credit scores are developed by comparing credit reports from millions of consumers over time and identifying factors to predict how well a person will manage his or her credit now and in the future. Those factors include:

• Payment history. Whether you've made payments on time in the past is used to predict how likely you are to pay your debts in the future.
• Outstanding balances. Being overextended, or having a high credit balance in relation to your credit limit, on your credit accounts tends to lower your score.
• Length of your credit history. Credit scores reflect payment patterns over time, so having a longer history gives lenders a more reliable picture of your credit.
• Types of credit used. Having a diverse mix of account types usually has a positive effect on your score.
• New credit. A series of requests for new credit may suggest to lenders that you are looking to take on new debt. In general, numerous requests for credit may lower your credit score. However, because people tend to shop around for mortgages and other loans, all credit applications within a 14-day period are counted as a single request.

A credit score takes into consideration all these categories of information, not just one or two. No one piece of information or factor alone will determine your credit score. Credit scores are considered unbiased because they are based only on your past credit history. Your score cannot be based on race, religion, national origin, age, sex, marital status or income.