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1/9/2013 5 Factors of Credit ScoringYour FICO (credit) Score is impacted by 5 main factors. I have listed each of the factors below and their corresponding impact on your score as a percentage. You will also find a brief description of each factor..... Payment History (35% Impact): Paying debt on time and in full has a positive impact. On the other hand; late payments, judgments, and charge-offs have a negative effect. Outstanding Credit Balances (30% Impact): Debt ratio of outstanding balance to available credit is important. Keeping that proportion below 30% is critical to maintaining great scores. Credit History (15% Impact): The length of time a particular credit line has been opened is important. A seasoned borrower is stronger. Inquiries (10% Impact): Hard inquiries for credit will negatively impact the score. Auto and mortgage inquiries receive special treatment as 20 inquiries can be made in a 45-day period and still only be treated as 1 inquiry. Type of Credit (10% Impact): A mix of auto loans, credit cards, and mortgages is positive, rather than a concentration in credit cards only. Feel free to contact me with any questions you may have on credit scoring and how to improve your specific scores…I’m happy to help! Comments are closed.
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