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Credit scores are determined by your personal credit history. There are five elements used to determine your credit score.
Credit Report Score Chart
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35% |
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30% |
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15% |
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10% |
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10% |
Source: FICO |
All five of these items are considered when assigning your credit score. The Fair Isaacs Company (FICO) uses a complex mathematical formula to combine all of your items and measure them against a national average.
Making payments on time each month is the most important thing you can do to improve your credit score.
Your Payment History
- How well you have paid credit card accounts, retail accounts, your mortgage, installment loans, etc.
- Are there any adverse items such as bankruptcy, delinquency, judgments, liens, etc.
- How long were any delinquencies past due, how much was past due, and how many times did you have past due accounts
- How long has it been since you had any past due items
- How many accounts you have paid on time, or as agreed
- How long has it been since you had any past due items
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Amount You Owe
- Amount you owe on all accounts
- Amount you owe on specific types of accounts
- Number of accounts with balances
- Proportion of credit line used on certain revolving accounts
- Amount owed now in relations to the original loan balance on certain installment accounts
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Length of Credit History
- Length of time your accounts have been active
- Length of time your certain types of accounts have been active
- How long since your last activity
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New Credit
- Number of accounts recently opened and what types of accounts were opened
- Number of recent credit inquiries
- Time since recent account openings and credit inquiries
- Does your credit report show that you are re-establishing a good payment record after a time of payment problems
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Types of Credit
- Number of credit card accounts
- Number of retail accounts
- Number of installment accounts
- Number of finance company accounts
- Do you have a home mortgage
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