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Credit Score
Credit Score FactorsThe biggest credit scoring company Fair, Isaac and Company has disclosed the factors it considers in generating credit scores. Fair, Isaacs scores are called FICO scores. Most creditors and credit bureaus either use Fair, Isaacs scoring system or have a system based on the Fair, Isaac system, According to Fair, Isaac, the factors that are considered in determining FICO scores are: Payment history (about 35% of the score). Amounts owed on credit accounts (about 30% of the score). Fair Isaac looks at the amount owed on all accounts and whether there is a balance. They are looking to see whether you manage credit responsibly A large number of accounts with balances may indicate to them that you are over-extended. Length of credit history (about 15% of the score). In general, a longer credit history increases the score. New credit (about 10% of the score). Fair, Isaac, likes to see that you have an established credit history and that you don稚 have too many new accounts. Opening several accounts in a short period of time can indicate greater risk. Types of credit (about 10% of the score). Fair, Isaac is looking for a mix of different types of credit. However; this factor is usually not important if there is sufficient other information upon which to base your score. More information is available on-line at http://www.myfico.com or |
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