FICO score is based on five factors: Payment History, Accounts Owed, Length of Credit History, New Credit and Mix Credit.
Payment History:
It is 35% of the FICO score. It determines whether the person has paid his credit on time or not.
Accounts Owed:
It is 30 % of the FICO score. It determines how much credit an individual owes i.e. how much money he has to pay. The ratio of money owed to the amount of credit available is what FICO consider.
Length of Credit History:
It is 15% of the FICO score. The older you have credit account is, the better your score. In a general way, it is how longer your credit is.
New Credit:
It is 10% of credit score. New credit means newly opened accounts. If you have opened new accounts in a short period it results in a bad score.
Credit Mix:
It is 10% of credit score. Credit mix has a variety of accounts. For high credit scores, you should have a strong mix of retail accounts, credit cards, and instalment loans such as signature loans or vehicle loans.