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What’s In Your Score
FICO Scores are calculated from a lot of different credit data in your credit
report. This data can be grouped into five categories as outlined below. The
percentages in the chart reflect how important each of the categories is in
determining your score.
These percentages are based on the importance of the five categories for the
general population. For particular groups - for example, people who have
not been using credit long - the importance of these categories may be
somewhat different.
Payment History
accounts, installment loans, finance
company accounts, mortgage, etc.)
wage attachments, etc.), collection
items, and/or delinquency (past due items)
limits on certain types of revolving
accounts)
original loan amount on certain types
of installment loans)
Length of Credit History
opened, by type of account
Types of Credit Used
accounts (credit cards, retail accounts,
installment loans, mortgage, consumer
finance accounts, etc.)
FICO Scores are calculated from a lot of different credit data in your credit
report. This data can be grouped into five categories as outlined below. The
percentages in the chart reflect how important each of the categories is in
determining your score.
These percentages are based on the importance of the five categories for the
general population. For particular groups - for example, people who have
not been using credit long - the importance of these categories may be
somewhat different.
Payment History
- Account payment information on specific
accounts, installment loans, finance
company accounts, mortgage, etc.)
- Presence of adverse public records
wage attachments, etc.), collection
items, and/or delinquency (past due items)
- Severity of delinquency (how long past due)
- Amount past due on delinquent accounts or collection items
- Time since (recency of) past due items (delinquency),
- Number of past due items on file
- Number of accounts paid as agreed
- Amount owing on accounts
- Amount owing on specific types of accounts
- Lack of a specific type of balance, in
- Number of accounts with balances
- Proportion of credit lines used
limits on certain types of revolving
accounts)
- Proportion of installment loan amounts
original loan amount on certain types
of installment loans)
Length of Credit History
- Time since accounts opened
- Time since accounts opened,
- Time since account activity
- Number of recently opened accounts, and
opened, by type of account
- Number of recent credit inquiries
- Time since recent account opening(s), by type of account
- Time since credit inquiry(s)
- Re-establishment of positive credit
Types of Credit Used
- Number of (presence, prevalence, and
accounts (credit cards, retail accounts,
installment loans, mortgage, consumer
finance accounts, etc.)
Credit Education
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Platinum Funding Solutions, Inc.
The Kelly Byrnes Team
The Kelly Byrnes Team
Improving Your Credit Score
It’s important to note that raising your score is a bit like losing weight: It
takes time and there is no quick fix. In fact, quick-fix efforts can
backfire. The best advice is to manage credit responsibly over time. You
will see how much money you can save by just following these tips and
raising your score.
Payment History Tips
can begin to manage your credit and pay on
time, your score will get better over time.
Amounts Owed Tips
outstanding debt can affect a score.
improve your score in this area is by
paying down your revolving credit. In fact,
owing the same amount but having
fewer open accounts may lower your score.
your available credit. This approach could
backfire and actually lower score.
Length of Credit History Tips
New Credit Tips
Do your rate shopping for a given loan within a focused period of
time.
FICO® scores distinguish between a search for a single loan and a
search for many new credit lines, in part by the length of time over which
inquiries occur.
Re-establish your credit history if you have had problems.
Opening new accounts responsibly and paying them off on time will raise
your score in the long term.
Note that it's OK to request and check your
own credit report. This won't affect your
score, as long as you order your credit report
directly from the credit reporting agency or
through an organization authorized to provide
credit reports to consumers. Check out my
links page for your free annual credit report!!
Types of Credit Use Tips
Apply for and open new credit accounts only
as needed.
Don't open accounts just to have a better credit mix - it probably won't
raise your score.
Have credit cards - but manage them responsibly.
In general, having credit cards and installment loans (and paying timely
payments) will raise your score. Someone with no credit cards, for
example, tends to be higher risk than someone who has managed credit
cards responsibly.
Note that closing an account doesn't make it
go away.
A closed account will still show up on your credit report, and may be
considered by the score.
It’s important to note that raising your score is a bit like losing weight: It
takes time and there is no quick fix. In fact, quick-fix efforts can
backfire. The best advice is to manage credit responsibly over time. You
will see how much money you can save by just following these tips and
raising your score.
Payment History Tips
- Pay your bills on time. Delinquent payments and collections can
have a major negative impact on your score. - If you have missed payments, get current and stay current.
The longer you pay your bills on time, the better your score. - Be aware that paying off a collection account will not
remove it from your credit report. It will stay on your report
for seven years. - If you are having trouble making ends meet, contact your
creditors or see a legitimate credit counselor. This won't
can begin to manage your credit and pay on
time, your score will get better over time.
Amounts Owed Tips
- Keep balances low on credit cards and
outstanding debt can affect a score.
- Pay off debt rather than moving it
improve your score in this area is by
paying down your revolving credit. In fact,
owing the same amount but having
fewer open accounts may lower your score.
- Don't close unused credit cards as a short-term
- Don't open a number of new credit cards that you
your available credit. This approach could
backfire and actually lower score.
Length of Credit History Tips
- If you have been managing credit for a short time, don't
open a lot of new accounts too rapidly. New accounts will
lower your average account age, which will have a larger effect
on your score if you don't have a lot of other credit information.
Also, rapid account buildup can look risky if you are a new credit
user.
New Credit Tips
Do your rate shopping for a given loan within a focused period of
time.
FICO® scores distinguish between a search for a single loan and a
search for many new credit lines, in part by the length of time over which
inquiries occur.
Re-establish your credit history if you have had problems.
Opening new accounts responsibly and paying them off on time will raise
your score in the long term.
Note that it's OK to request and check your
own credit report. This won't affect your
score, as long as you order your credit report
directly from the credit reporting agency or
through an organization authorized to provide
credit reports to consumers. Check out my
links page for your free annual credit report!!
Types of Credit Use Tips
Apply for and open new credit accounts only
as needed.
Don't open accounts just to have a better credit mix - it probably won't
raise your score.
Have credit cards - but manage them responsibly.
In general, having credit cards and installment loans (and paying timely
payments) will raise your score. Someone with no credit cards, for
example, tends to be higher risk than someone who has managed credit
cards responsibly.
Note that closing an account doesn't make it
go away.
A closed account will still show up on your credit report, and may be
considered by the score.
Please note that:
A score takes into consideration all these categories of information,
not just one or two. No one piece of information or factor alone will
determine your score.
The importance of any factor depends on the overall information in
your credit report. For some people, a given factor may be more
important than for someone else with a different credit history.
In addition, as the information in your credit report changes, so
does the importance of any factor in determining your score. Thus,
it's impossible to say exactly how important any single factor
is in determining your score - even the levels of importance
shown here are for the general population, and will be different for
different credit profiles. What's important is the mix of information,
which varies from person to person, and for any one person over time.
Your FICO score only looks at information in your credit report.
However, lenders look at many things when making a credit decision
including your income, how long you have worked
at your present job and the kind of credit you are requesting.
Your score considers both positive and negative information
in your credit report.
Late payments will lower your score, but establishing or re-establishing a
good track record of making payments on time will raise
your score. (myfico.com)
A score takes into consideration all these categories of information,
not just one or two. No one piece of information or factor alone will
determine your score.
The importance of any factor depends on the overall information in
your credit report. For some people, a given factor may be more
important than for someone else with a different credit history.
In addition, as the information in your credit report changes, so
does the importance of any factor in determining your score. Thus,
it's impossible to say exactly how important any single factor
is in determining your score - even the levels of importance
shown here are for the general population, and will be different for
different credit profiles. What's important is the mix of information,
which varies from person to person, and for any one person over time.
Your FICO score only looks at information in your credit report.
However, lenders look at many things when making a credit decision
including your income, how long you have worked
at your present job and the kind of credit you are requesting.
Your score considers both positive and negative information
in your credit report.
Late payments will lower your score, but establishing or re-establishing a
good track record of making payments on time will raise
your score. (myfico.com)
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