Credit Score Tips

THE FICO CREDIT SCORE– WHAT IS IT?

Per Fair Isaac, the company that invented the FICO credit risk score, FICO Scores are calculated from a lot of different credit data in your credit report. The percentages in this 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.

Contact our Navarre Mortgage Broker today! (850) 936-0422

  1. PAYMENT HISTORY
  • Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
  • Presence of adverse public records (bankruptcy, judgments, suits, liens, 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), adverse public records (if any), or collection items (if any)
  • Number of past due items on file
  • Number of accounts paid as agreed
  1. AMOUNTS OWED
  • Amount owing on accounts. Target is for balances not to exceed 30% of the available high credit amount.
  • Amount owing on specific types of accounts
  • Lack of a specific type of balance, in some cases
  • Number of accounts with balances
  • Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
  • Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)
  1. LENGTH OF CREDIT HISTORY
  • Time since accounts opened
  • Time since accounts opened, by specific type of account
  • Time since account activity
  1. NEW CREDIT
  • Number of recently opened accounts, and proportion of accounts that are recently 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 history following past payment problems
  1. TYPES OF CREDIT USED
  • Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)

Don’t know where to begin? Contact our Navarre Mortgage Broker for real results! (850) 936-0422