Your credit score is determined by 5 different factors. Each of these factors hold a different value or weight when calculating your FICO score. The 5 factors that make up your credit score are payment history, amounts owed, length of credit history, new credit, and credit mix.
Your payment history accounts for the biggest portion of your credit score, it accounts for 35% of your entire credit score. Amounts owed, or debt ratios is the second biggest portion of your credit score accounting for 30% of your entire credit score. Length of credit history is the third biggest portion accounting for 15% of your credit score. Credit mix and new credit accounts of 10% for each portion.
It is very important to be able to identify the different factors that make up your credit score and how each individual factor can impact your credit score negatively and positively. Couple of important tips to help ensure you keep a good credit score is ensuring your payments are always on time. You also want to ensure you keep your credit cards at a 10% credit/balance ratio. You also want to ensure you are not closing accounts as that may do more damage that good to your credit score.
If you’re unsure why you have a low credit score, WE CAN HELP!
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for more details and to discuss your own individual situation.