Know The Five Factors That Feed FICO This Fall

Know The Five Factors That Feed FICO This Fall.
This five factors helps to enhance  credit score. When you are ready to improve your credit score this this fall, the major ways is to know your  five factors that feed your FICO score.
FICO is actually secretive on how there score is exactly calculated, but the following criteria are considered as discussed below. FICO is used most interchnageably with your credit score, this article will expose you to how are particular corporation became synonymous with the credit scoring industry and it will require knowing a bit on how FICO is calculated base on credit history and other credit details
How Is FICO Score Calculated
1.Payment History.

One of the major things that help to boost your credit score by about 35 percent is your payment history and therefore you must do all you can, doing this fall to make sure that you make your payment as early as you can. Make automated payments that will come directly from your bank account and this will make sure that you have a good credit history once it can be observed that you do make prompt payment.

2. Balance Owed

This in other words account for about 30 percent of your crwdit score. Try as much as possible to always bring your balanced owed to about 20 percent of the high credit limit. Challenge your self on trying to beat down your credit card debt by paying up your debt and this will increase your credit score.
3. Length of Credit History.

This also acounts for about 15 percent of your total credit score and this can be achieve by making sure you keep all your account active through making sure your credit cards are being used consistently and also make sure you do not close any unused account

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4.New Account
This accounts for 10 percent of your credit score.
Opening many accounts do not increase your credit score at all, it affect your credit score negatively because when you apply for too many credit cards it increase your risk of falling into a financial debt, there by avoid opening too many accounts and limit how you appply for loans and mortgage, all this will increase your credit score.
5. Different Types of Credit(Credit mix)
And this lastly also contributes to 10 percent also of your credit score, having different kind of credit types which include revolving loan and instalment loans.
Experts make it clear that when you repay variety of debt product, it sends an indication that you as a borrower can handle every kind of credit, such borrowers are seen to be of lesser risks to lenders.

Not having a credit card are being seen as a bigger risk even than people with well managed credit cards with good credit scores. It also help FICO scores when you have a good credit card, intalment loans and also a good credit history.

How Often is A FICO Score Calculated.

There is always a report submitted by your lenders to the  bereaus at the end of every month by your lenders, even though this report may not necessarily affects your credit score, except maybe your credit report have change as well. Your FICO score usually changes time to time automatically depending on how you constantly make your payment amd increase your credit utilization ratio and for whatever changes that you are going to observe on your FICO score, it always takes a while even if there is positive change. Only about 4 people saw a change of 20 points change over a three month period according to FICO.

Reference
1. Master the Five Factors That Feed FICO This Fall.
https://www.huffpost.com/entry/master-the-five-factors-t_b_1848793
2. FICO’s 5 Factors: The Components of A Credit Score.
https://www.creditcards.com/credit-card-news/help/5-parts-components-fico-credit-score-6000.php
3. How is a FICO Score Calculated? 5 Factors That  Go Into Your Score.
https://www.fundera.com/blog/the-fico-score-how-is-this-all-important-number-calculated

Image Credit: MoneyUnder30.com

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