The primary reason to keep a good credit score is for when credit is needed, that is, borrowing, leasing, proof of responsibility and stability, and of course, saving money in interest. So it is no secret that creditors want to get to know you by how you have handled similar requests in the past. This determines the amount of risk they are getting themselves into when reviewing your request.

FICO Credit scores are broken down into 5 categories, each reflecting credit data on your credit report;

Payment history accounts for 35% of your credit score: Your payment history alone has the most impact on your overall score. The impact that missing a loan payment has, is just as detrimental as missing a credit card payment. Creditors consider past long-term behavior to forecast future long-term behavior. One of the best ways for borrowers to improve their credit score as a whole is by making consistent, timely payments.

Amounts owed accounts for 30%: Having perfect payment history is not all. Having credit available and knowing how to use it responsible is just as important. Creditors, more often than not, take a look at how much balance you use in relation of how much credit you still have available. If your credit card are maxed out, or near the limit, creditor will interpret this as a high risk request, as defaulting on could be the next step.

Length of credit history 15%: This is an overview of how long your credit accounts have been established, from your oldest account, to the newest account, and an average of all your accounts. A longer credit history will surely increase your FICO Scores. The longer the credit history on your accounts, the better off you’ll be .

New credit 10%: Opening several credit accounts in a short amount of time brings up red flags, specially if the rest of your credit file looks weak. Creditors see risk when a credit file has too many new accounts open in a short period of time.

Types of credit used 10%:Credit scores consider a mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Although is good to have variety, it is not necessary to have one of each.
When considering having a high FICO score, consider the combination of these different factors and how each impacts your overall score.

At Credit Services of America, we specialize in improving credit scores. From credit repair and debt settlement, to student loan consolidation and trade lines, we are your one shop for all your credit goals.

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link 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.