As you know, your FICO score is a major factor in determining the type of loan you can get, the rate you will pay, and if you will even qualify for a loan . Credit rating agencies assess your FICO score based on these factors:

* Payment history (35%). Even just a couple of missed payments can affect your credit history.
* Amounts owed (30%). Keeping debt within affordable limits is a sign of financial health.
* Length of credit history (15%). The longer the credit history, the better the score.
* New credit (10%). Agencies will check to see if you recently opened a lot of credit cards or had credit checks for large purchases (cars, mortgages, etc.).
* Types of credit in use (10%). Borrowers will usually need to have at least three active lines of credit to qualify to buy a home.

Here are a few tips to improve your scores:

* Apply for and open new credit accounts only when necessary.
* Manage credit cards wisely. Having credit cards (and making timely payments) can raise your score. Keep your balance at less than half of the credit limit.
* Closing an account doesn't make it go away. A closed account will still show up on your credit report, and may be considered in your score.