Your credit or "FICO" score is made up of several parts. Lets go over these.
35% of your FICO is based on your payment history
- Recent late payments are most damaging. 0 to 6 months is the worst, then 7 to 23, and 24+.
- Frequency of payments or late payments.
- Severity (dollar amount) of missed or late payments.
30% is based on accounts that you currently owe on
- Your income in relation to how much you owe. (Higher income with less modey owed = better score).
- If 50% or more of credit is revolving score is lowered, dramatically lowers again at 75%.
15% is based on length of credit history
- Accounts that have been opened for longer periods are better for your credit score.
10% is based on type of credit
- Trade lines are measured and categorized by: auto, mortgage, credit cards, etc.
- Buy now pay later trade lines usually lower your score.
10% is based on new credit and inquiries
- To many newly opened accounts will lower your score.
- All mortgage inquiries in the last 30 days are counted as one.
- Multiple types of inquiries in a short period of time can lower your score.
- Several new inquiries (not for a mortgage) of same type will lower score. Car shopping is notorious for this. Each dealership you visit may pull your credit several times.
"Thank you Academy Credit. Approximately 4 months ago, I started with you and found some discrepancies on my credit report. My credit rating is all ready starting to improve and go up! You have made my credit score much more accurate. I rarely write recommendation letters, but having good credit means everything in today's lifestyle."
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