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What Determines My Credit Score?

Your credit score may sometimes seem like some arbitrary number that changes with the blowing of the wind, but there are definite factors that go into calculating that ever-important number.

The Fair Isaac Corporation is who determines your “FICO,” or credit score. They use five different categories to determine the final number.

  • Payment History. This constitutes 35% of your total score and is one of the most important factors. This includes account payment information, how long payments were overdue, and how long it has been since the last adverse occurrence.

  • Amounts Owed. 30% of your score is determined by how much you owe on each credit account, both individually and totaled together. It also takes into account the proportion of credit used vs. the amount of credit available.

  • Length of Credit History. This factor constitutes 15% of your credit score and includes how long your accounts have been opened along with the time since they were last active.

  • New Credit. 10% of your credit score is calculated based on this factor. It includes how long it has been since your most recently opened account and the time since recent credit inquiries.

  • Types of Credit Used. The last 10% of your credit score considers the various types of credit you could use, including credit cards, retail accounts, installment loans, mortgage loans, and more.

With all these factors to consider, your credit score will nearly constantly be on the move. Stay up-to-date and on top of your credit to keep it in ideal shape. For more information, don't hesitate to contact our Finance Team here at Nick Nicholas Ford and we'd be glad to help you.

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