Credit Scores

February 16, 2009

The most common credit score used today is the FICO (Fair Isaac Corporation) score and it ranges from a low of 350 to a high of 850. The ideal number to be above is 720. If you are lower than 720, interest rates start to go up and the more difficult it is to obtain a loan. Five critical credit criteria that make up your credit score are the following:

1. Payment History: Paying your bills on time accounts for 35% of your credit score. Be sure to avoid late fees.
2. Credit Ratio: The amount of debt you have accounts for 30% of your credit score.
3. Credit Type: The type of accounts you have applies to 10% of your score.
4. Credit Maturity: The length of time you have had your individual credit accounts makes up 15% of your score.
5. New Credit: Recent credit history makes up 10% of your score.

February 16, 2009 | Filed Under Randomness

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One Response to “Credit Scores”

  1. Paul on April 13th, 2010 9:17 am

    Good Morning

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