The following five factors collectively determine your credit report and your ability to get credit.

1. Payment History

Your payment history typically has the most significant weight in your credit rating and on your credit report. This refers to your ability to pay on time, over time. Even though an overall strong credit profile may help to cancel out a few late payments over the years, it is still vital that you pay all of your bills on time, each and every month.

2. Amounts Owed

Amounts owed in terms of your credit report refers not to owing money, but owing money to a lot of different accounts. If you do have many accounts, a prospective creditor may question your ability to handle yet another monthly payment.

3. Length of Credit History

Generally speaking, the longer your credit history, the better your credit rating, and credit report. If your credit history is relatively short, other strengths in your credit report profile can help to offset this.

4. New Credit

Opening several credit accounts in a short period of time can represent greater risk, especially if you have a short credit history. Fortunately, your credit report can distinguish between a search for many new credit accounts versus the more innocuous practice of recent rate shopping, which in itself does not make you a higher risk.

5. Types of Credit in Use

A healthy mix of credit cards, mortgage loans, finance company accounts, and retail accounts will improve your score, but keep in mind that it's not necessary to have one of everything. Never open a credit account that you won't use simply so that it appears on your credit report.

So, next time you're thinking of applying for new credit or closing down an account, consider these factors that influence your credit report.