It is important to understand that your credit score only appears in the information contained in your credit report and does not reflect additional information that your lender may consider evaluating.
For example, your credit report does not include things like current income and duration of work. However, because your credit score is a key tool used by lending agencies, it is important to maintain and improve it periodically
Due to the nature of the property of FICO, Isaac Fair Company does not disclose the exact formula used to calculate this figure. However, what is known is that the account is divided into five major categories with different levels of importance. These categories, with weight brackets, payment history (35%), outstanding amount (30%), credit history length (15%), new credit (10%) and type of credit used (10%). All these categories are taken into consideration in your overall score – any single area or accident determines your score.
And review the payment history class how well you’ve met your previous commitments on the different types of accounts. It also seems to have previous problems in the history of your payment, such as bankruptcy, collections and delinquency. It takes into account the size of these problems, and the time taken to resolve them, and how long it was since the emergence of problems. For more problems you have in your credit history, the weaker your credit score is.
The next largest component is the amount that you currently owe lenders. While this category focuses on the current amount of debt, also it appears in a number of different accounts and certain types of accounts that contract. This area focuses on your current financial situation, and will be a large amount of debt from many sources have a negative effect on your score.
Other categories (length of credit history, new loans and credit type used) is fairly straightforward. The more you have a good credit history, the better. Proper that the person dictates who was not late with the payment of more than twenty years is a safer bet than someone who was on time for them. Also, people who apply for credit too much financial pressure may already be causing them to do this, so every time you apply for credit
The score Dengjid gets a little. Finally, only one person credit card is less dangerous than someone with 10, so the more types of credit accounts you have, the lower your score is