06/28/2022
THINGS TO REMEMBER:
1. Thirty-five percent of your FICO score is determined by your payment history. Ontime payments build your score. Late payments hurt.
2. Thirty percent of your FICO score is determined by comparing the amount you owe, to the amount of credit you have available. Lenders are wary of people using too much credit, as statistics show they’re more likely to miss payments.
3. Fifteen percent of your FICO score is based on the length of your credit history. There’s a myth that having too many accounts can hurt your credit score. In fact, it’s more important to keep your accounts open.
4. Ten percent of your FICO score is determined by the number of new accounts you open. Opening a new account temporarily lowers your credit score for 12 months.
5. Ten percent of your FICO score is based on the type of credit you use. Lenders like to see a mix of card accounts, because statistics have shown that having too many accounts of the same type slightly increases the risk of a person not being able to make timely payments.
