Golden State Debt Management
  • Home
  • Debt Relief Programs
  • Resources
    • Client Login
    • Inspiring Reviews
    • FAQ
    • Blog
  • Español

Credit Scores 101 – Everything You Need to Know About Your FICO Score

12/11/2017

1 Comment

 
Picture
If you’ve ever tried to mortgage a home or finance a vehicle, then you understand the importance of having a good credit score. Although you may know that having good credit is important, do you know about the five factors that affect your credit score?
​

Being knowledgeable about the five credit score factors can help you develop an action plan for improving your FICO credit score. ​
Payment History
Your payment history is probably the most important credit score factor, making up 35% of your credit score. Missing a single monthly payment can reduce your credit score by at least 50 points.

To improve your FICO score it is imperative that you make timely payments for at least two years since most credit reports show the last 24 months of your payment history.
Try your best to avoid bankruptcy, lawsuits, liens, and foreclosures because these items stay on your credit report for at least seven years.

Debt Weight
Debt weight is the factor that measures the amount of debt you’re using in relation to your total available credit. This factor makes up 30% of your total credit score and is comprised of different types of credit including mortgages, student loans, and credit cards.

To improve your credit score, keep your debt weight below 30% of your total available credit. Also, avoid closing any accounts that you’ve paid off. Having these accounts available will improve your score, even if you’re not using them.

New Credit
New lines of credit make up 10% of your FICO credit score. Although 10% may seem insignificant, opening several lines of credit at once can damage your credit score.

To avoid damaging your credit, opening new accounts should be spread out over several months.

Credit Mix
Having a good mix of credit is beneficial to your credit score. Making up 10% of your credit score, credit mix represents a blend of different credit types such as credit cards, mortgages, and loans.
​

Length of Credit History
The amount of time you’ve had an open credit account can affect your credit score. This factor makes up 15% of your credit score. For a favorable FICO score, do your best to maintain a long credit history.
1 Comment
Meredith Owens link
12/11/2020 05:31:40 pm

Great reading your blog ppost

Reply



Leave a Reply.

    Archives

    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    July 2021
    April 2021
    March 2021
    January 2021
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017

    Categories

    All
    Family Finances
    Financial Organization
    Improve Credit Score
    Kids & Money
    Payday Lenders
    Personal Finance
    Taxes
    Ways To Save

    Help with Debt?

    Need help with your credit card debt?  Talk to certified credit counselor today call 844-872-9046
financial counselor - debit consolodation
 New Clients: 844-249-2366
Existing Clients: 800-397-1302
​Fax : 800-398-9317
Accredited Non-Profit Credit Counseling Agency
23868 Hawthorne, Suite 201 Torrance, CA 90505
Privacy Policy
  • Home
  • Debt Relief Programs
  • Resources
    • Client Login
    • Inspiring Reviews
    • FAQ
    • Blog
  • Español