To determine the ranking of factors affecting your credit score from most to least significant, we must consider how each factor impacts credit scoring models. Here is an analysis of the three given factors:
1. Payment History (II): This is generally known as the most crucial factor in your credit score. It shows how consistently you have made payments on time, indicating your level of financial responsibility.
2. Amounts Owed (1): Also referred to as credit utilization, this factor looks at how much credit you are using in relation to the total credit available to you. It is a significant factor but generally considered less impactful than payment history.
3. Length of Credit History (III): The length of time you have had credit open is important, as it provides a broader context for lenders to understand your financial behavior over time. However, it is considered less influential than both payment history and credit utilization.
Based on this analysis, the correct ranking from most to least impact is:
II. Payment History
I. Amounts Owed
III. Credit History Length
Thus, the order that ranks these factors from most to least effect on your credit score is:
b. II, I, III
