What makes up a FICO credit score?
Posted by Mike Ciucci on
In the land of all credit scores, FICO is king. The majority of banks in the USA use FICO scores for whether or not they are going to lend you money, and at what interest rate.
So how does FICO come up with this score? I'll break it down for you, below:
1.) Payment History. Based on you payment history, making the repayment of past debt is the most important factor when calculating credit scores.
2.) Debt Amounts. This is based upon your total outstanding debt. Removing lines of credit is the best thing you can do when getting rid of debt amounts. Another thing to consider is not maxing out your credit limit with credit cards. Try to maintain a good balance, and pay it off frequently.
3.) Length of Credit History. This is the length of…
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