Everything You Need to Know About Your FICO Credit Score

2019/02/25

If you want to borrow, your credit score determines the amount of credit you receive and at what interest rate. Your FICO score is calculated from 300 to 850. A credit score of 720 or over shows an excellent credit rating. A score of 650 or less means, that your credit card needs help. The information contained in your credit score reaches the creditors from three major credit bureaus (can be obtained given Experian, Equifax or Trans Union).

FICO scores are based on multiple criteria in general, your credit card. This data is divided into five categories. The percentages below reflect the importance of each category to determine your FICO score.

1) Payment History (35%) Do you pay your bills on time for credit cards, retail accounts, loans, mortgages, etc.? Do you have any judgments, claims, liens, collection notices, default or bankruptcy in your past? If you are a crime as you are and how long they have been late? Do you have a number of bills marked paid.

2) the amount of outstanding debt (30%) What is the total amount of outstanding revolving credit agreement? What types of loans outstanding? A high degree of balance dollars, owed a credit card company lower your credit score more than one mortgage. How many credit card accounts you have open? What percentage of your credit line has been used with any card? What is the total amount from your total income?

3) Length of credit history (15%) How long since you opened your credit card accounts? The more you have your credit history, the highest score will be set generated.

4) Credit System (10%) have recently opened several accounts have? What type of account has been opened? Do you have many credit applications in recent years? Have good credit history re-created as a result of its poor credit payment?

5) types of credit used (10%) What are the types of loans, the open (credit card retail accounts, installment loans, mortgage accounts, consumer loans, etc.), a credit card number recently opened be regarded as something negative since. On the other side has a mortgage on time paid for 2 years, your FICO score will be added.

In addition to your FICO score, income from employment, how long have you worked in their current job and the type of credit line that you ask are all factors.

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