What goes into creating your FICO Score?
Filed Under Credit Scores, Loans, Lending & Credit · Tagged: Credit Scores
Most people (74%) believe your credit score is based on your income. Not True!
- 35% is payment history
- The most important factor in your credit score is your payment history. Making payments on time is key in keeping and getting your score as high as possible.
- 30% is the amount owed
- Keep your credit card balances low, at the most have 30% owed and 70% available credit.
- 15% is the history of your credit
- How long have you had credit established? If you have all new credit, this could hurt you.
- 10% is new credit (less than 6 months old)
- Getting new credit can help someone with little or no credit, if all of your credit is established, not to worry
- 10% type of credit
- Diversity is best, a car loan, home loan, and a couple of credit cards.
Great credit requires a delicate balance. Not too much on credit cards, not only a home loan; But a balance, on time payments and the time to prove you are credit worthy.
Comments
Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!