The credit scoring system breaks your credit report down into 5 major factors, and if each factor is not understood or managed properly, you may be throwing away money by not getting the preferred rates that are only available to the most creditworthy individuals-those with the highest credit scores. One of the biggest factors is one that you have the most control over: Amounts Owed. This factor makes up 30% of your credit score, making it one of the most important factors.

by: Linda Ferrari

When managing your credit, you may not realize that some factors matter more than others, or, like most consumers, you may not know that there are factors involved at all. Most of us think that if we pay our bills on time that we have a handle on our credit, but this is not the case.