What factors affect credit (FICO) scores?
In general, there are 5 factors which affect your credit score calculation. The factors with their weightage of importance are given below: Payment history (35%): This includes information on – How you’ve paid credit cards, installment loans, mortgages etc. Adverse public records such as bankruptcy, liens, collections Time of past due items and adverse public records Accounts paid as agreed Amount you owe (30%): This provides details on – Number and type of accounts you owe Ratio of balance to total credit limit (revolving accounts) Ratio of balance to original loan amount (installment loans) Length of credit history (15%): This includes the time period since you’ve opened different types of accounts. New credit (10%): This provides details of – The accounts you’ve recently opened Number of recent credit inquiries Time since recent credit inquiries Time since accounts opened recently How you’ve rebuild credit after past credit problems Credit/loan types used (35%): This factor includes
