The Five Most Important Factors Of Your Credit Score

1. Your Payment History

• This makes up about 35 percent of the typical score.

• According to Fair Isaac & Co., six out of ten Americans don’t have a single late payment on their credit report.

• When it comes to negatives like late payments, the score focuses on three factors:

  • Recency – this is how recently the borrower was in trouble.
  • Frequency – this is how frequently the borrower has been in trouble.
  • Severity – this is how serious the trouble has been.

2. The Amount of Debt

• This makes up about 30 percent of your score. Total amount owed is examined, as well as the different types of debt involved.

• Maxing out your credit limit, or even coming close, will inevitably hurt your score.

  HAVE A QUESTION? Please type your question here Name Email Phone Let us know the best way to reach you email or phone and we will get right back to you!

• The greater the difference between your credit balance and your limit, the better.
  

3. The Amount of Time You’ve Carried Credit

• This is fifteen percent of your score. The longer you’ve had credit, the better.

• According to Fair Isaac, the average American has carried credit for fourteen years.
  

4. How Many Times You’ve Applied for Credit

• This is ten percent of your score.

• The more times you’ve applied for credit in a short amount of time - without a long credit history - the lower your score.

• According to Fair Isaac, the average American hasn’t applied for credit in the past 20 months.

5. The Variety of Your Credit

• This is 10 percent of your score.

• Fair Isaac doesn’t explicitly reveal what they regard as a positive credit mix, although they do say you don’t necessarily have to have a loan of each possible type.

• To get the best possible score, it’s recommended that you have revolving debt, like credit cards, as well as installment debt, like an auto loan.

• Bank credit cards are better than store or finance company credit cards.

• According to Fair Isaac, the average American has four or five bankcards, and most have at least one installment loan.

Disclaimer: This article is provided for information use only. It does not take the place of an attorney, a tax advisor, or an accountant. Always seek out the advice of a licensed professional before undertaking any significant change in your financial situation.

We at Valerie Fitzgerald and Associates realize that you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to email us at info@valeriefitzgerald.com or call us directly at 310-285-7515.  If you or anyone you know is looking to buy or sell a home, please note that we can provide detailed information and access to:

• Beverly Hills Homes for Sale
• Brentwood Homes for Sale
• Bel Air Homes for Sale
• Sunset Strip Homes for Sale
• Los Angeles Homes for Sale
• Santa Monica Homes for Sale
• Malibu Homes for Sale

You can count on the services of Valerie Fitzgerald and Associates to provide you with information you can trust.

Phone

Address

Email

Tel: 310-285-7515
Fax: 310-271-9204

301 N. Canon Drive,
Suite 215,
Beverly Hills CA
90210

General Information
Webmaster
Sales