Factors Affecting FICO Credit Scores and Their Percentages

FICO Credit Score is the most used in calculating of credit scores of individuals, here is some of the factors that determine your credit score by their percentage. Payment history (35%) Your track record of making (at the very least) minimal payment by the due date. Amounts owed (30%) How much of your borrowing capacity is actually being utilized. Divide total debt by total credit limits to arrive at this figure. Length of credit history (15%) Your active credit lines’ average age. Longer credit histories tend to demonstrate responsibility. Credit Mix (10%) The various sorts of active credit lines that […]



What Is Credit Score?

A credit score is a three-digit figure that ranges from 300 to 850 and is used to determine your credit risk or the possibility of timely payment of your debts. A credit score is a number that ranges from 300 to 850 and represents a person’s creditworthiness. A borrower’s credit score improves the way he or she appears to potential lenders. A credit score is calculated using information from your credit history.  Credit History This has to do with the number of accounts you have open, the total amount of debt you owe, and your repayment history, among other things.[…]