![]() ![]() You don’t have one single credit score, you actual have many and they are constantly changing. Your FICO score will not include information like race, color, religion, national origin, age, sex and marital status. Types of credit used (10%): In this portion of your score credit cards, retail accounts, installment loans, mortgages, and finance loans are all considered. It’s basically like telling lenders, “I am desperate for money,” or “I am frivolous with my spending.” Inquiries, new credit accounts, and time play a huge role in this portion of your score. New credit (10%): When looking at a credit report, opening too many credit accounts in a short period of time appears like a very large risk. ![]() (1) The age of all your accounts (2) the length of specific accounts and (3) how long it has been since you use each account. Length of credit history (15%): Your FICO score examines this portion with three different sets of criteria. Owing money doesn’t always mean you will have a lower score, but if your credit limit is $5000 and you owe $4500 it can appear that you are over extended and that you are more likely to make late payments or miss them altogether. ![]() Alternatively, things such as bankruptcy, tax liens, judgments, lawsuits, and foreclosures will affect your score very seriously.Īmounts owed (30%): Your percentage of available credit is also very important. Now a few late payments aren’t going to destroy your score. If you defaulted before it will appear that you are more likely to default again. Payment History (35%): Lenders want to know if you have actually paid back your credit accounts in the past. There are several factors that affect your score on this scale. FICO scores range from 300-850 a higher score is better. Your FICO score is the median score of the ones that the three major credit bureaus provide. Your FICO credit score is what most creditors will use to determine this risk. Whether you are applying for a credit card or looking to buy a home, lenders will want to know what kind of risk they are taking by lending you money. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |