The largest and most universal credit scoring company is the Fair Isaac Corporation: the company that generates "FICO" scores. The factors Fair Isaac considers in coming up with credit scores include:
- Payment history (about 35% of the score). The company looks at whether you've paid on time, have any delinquent accounts, or have declared bankruptcy.
- Amounts owed on credit accounts (about 30% of the score). Fair Isaac looks at the amounts you owe and how many of your accounts carry a balance. The more you owe compared to your credit limits, the lower your score.
- Length of credit history (about 15% of the score). Generally, a longer credit history yields a higher score.
- New credit (about 10% of the score). Fair Isaac likes to see an established credit history rather than a lot of new accounts. Opening several accounts in a short period of time might indicate a higher risk. Inquiries on our account may also lower your score, depending on the reason.
- Types of credt (about 10% of the score). Fair Isaac is looking for a "healthy mix" of different types of credit, both revolving accounts (such as credit cards) and installment accounts (like a mortgage or car loan).
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