What are the factors that influence a credit score?

The correct choice highlights the key elements that directly affect an individual's credit score. Payment history is the most significant factor, accounting for about 35% of a credit score, as it reflects whether an individual has made their payments on time. Credit utilization is the ratio of current credit card balances to credit limits and constitutes around 30% of the score; maintaining a low utilization rate is crucial for a healthy score. Length of credit history contributes 15%, as a longer history with established credit demonstrates responsible management of credit over time. New credit, which includes recent applications for credit, influences the score by about 10% and can be seen as a risk factor if there are too many inquiries. Finally, the types of credit used account for 10%, as a diverse mix of credit (such as credit cards, auto loans, and mortgages) can positively impact the score.

The other choices focus on personal financial factors that do not directly influence credit scores. For instance, income level and employment history may affect a person's ability to repay debt but are not considered in the credit scoring models. Similarly, budgeting ability, spending habits, and investment choices relate to overall financial health rather than to credit scores specifically. Lastly, factors like education, job title, and social