what is it?
A FICO score is essential a credit score. It allows businesses to check how credible you are in paying off any loans they may make to you, The higher your credit score, the better!
percentages
35% Payment History
The most weighted factor that makes up your credit score is your payment history. Putting effort into paying your bills on time in the present can go a long way. Though it is easier said than done, try to avoid missing payments and paying late. There is no better time to start improving your credit score than today, so get on the right track to good credit by paying your bills on time.
30% Amount Owed
Determined by a credit to debt ration, the amount of debt that you have is the second biggest factor in determining your credit score. To figure out your credit to debt ration, you simply divide the amount of debt on your credit card by the limit on that card, then multiply that number by 100. Anything below 50% is considered an acceptable ration, so that should be your goal. In addition to keeping a low ratio, it is important to actively try to pay off any debt that you may owe.
15% Types of Credit
Here is something to always keep in mind regarding credit, the longer your accounts are open for, the better. Credit bureaus praise individuals that have accounts that have been open for a long time, it is important to do everything in your power to have long credit history lengths.
10% New Credit
Applying for new credit is probably the easiest way to boost your credit score. If you have a steady income, then you should consider opening a couple new credit cards that you can charge small items to per month and pay them off. Be advised however, that opening too many new credit cards can negatively affect your score. You should open no more than one new credit card per year just to ensure that you are not going to get penalized by the credit bureaus.
10% Inquiries
Having credit diversity is the final factor that affects your credit score. You should have a variety of different types of credit, including credit cards, retail accounts, installment loans, mortgage loans, and finance company accounts.
The most weighted factor that makes up your credit score is your payment history. Putting effort into paying your bills on time in the present can go a long way. Though it is easier said than done, try to avoid missing payments and paying late. There is no better time to start improving your credit score than today, so get on the right track to good credit by paying your bills on time.
30% Amount Owed
Determined by a credit to debt ration, the amount of debt that you have is the second biggest factor in determining your credit score. To figure out your credit to debt ration, you simply divide the amount of debt on your credit card by the limit on that card, then multiply that number by 100. Anything below 50% is considered an acceptable ration, so that should be your goal. In addition to keeping a low ratio, it is important to actively try to pay off any debt that you may owe.
15% Types of Credit
Here is something to always keep in mind regarding credit, the longer your accounts are open for, the better. Credit bureaus praise individuals that have accounts that have been open for a long time, it is important to do everything in your power to have long credit history lengths.
10% New Credit
Applying for new credit is probably the easiest way to boost your credit score. If you have a steady income, then you should consider opening a couple new credit cards that you can charge small items to per month and pay them off. Be advised however, that opening too many new credit cards can negatively affect your score. You should open no more than one new credit card per year just to ensure that you are not going to get penalized by the credit bureaus.
10% Inquiries
Having credit diversity is the final factor that affects your credit score. You should have a variety of different types of credit, including credit cards, retail accounts, installment loans, mortgage loans, and finance company accounts.
checking your score
You can check your credit score with any of the three credit reporting agencies.
- Transunion
- Experian
- Equafax