How Is Your Fico Score Calculated?
1. Your payment history
Your payment history accounts for 45% your FICO score, it is without a doubt the greatest factor when calculating your score. This is typically a payment history for any credit cards, installment loans, finance companys, vehicle loans, mortage loans, or any other type of loan
2. Amounts that you owe
The amounts that you owe accounts for 30% when figuring out your score. They specifically will look at the number accounts you have, and the balances on those accounts. Are they maxed? Do you have available credit? The exact terminology is “Proportion of balances to total credit limits”
3. Length of credit history
Though this is not as weighed as heavily, it still accounts for 15% of your score. They basically look at when your first accounts were opened and the las time their was activity on certain accounts. In reality it does not good to have several open cards, with available credit that never get used. So use those cards, and pay them off.
4. New Credit
This is a number of recently opened accounts by a specific type of account. This accounts for 10% of your FICO score. They will also look at how well you restablished your credit worthiness after having adverse issues on your report. Other factors that come into play are the time that has passed since previous credit inquirys
5. Types of Credit Used
Remember you Fico score is calculated on both negative and positive information. There are a lot of factors that must be considered to calculate your score and this is just a general guideline.
For a quick way to get a high FICO score, check out the link below. I’m going to show you how I deleted over 50 items off my credit reports, forcing my FICO score through the roof. You too can do the same very easily
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