|
The following is based on information provided by MyFico.com. FICO is the world’s leading credit scoring company and its ratings are used by over 90% of all financial institutions. Some important notes: 1) the percentages listed below are somewhat tenuous and the importance of any one factor may be weighted differently depending on your individual credit report; 2) your credit score is only one factor that lenders consider before extending credit, and even if you have a good credit score, a lender may determine that something specific about your credit report is grounds for not extending you a loan. For example, credit counseling does not adversely affect your credit score, but many lenders will refuse credit if enrollment in a debt management plan (DMP) appears on your credit report.
Payment History---35%
Number of delinquencies relative to payments on time for specific types of loans like credit cards, department store cards, auto loans, mortgage loans, etc.
Number of negative public records like bankruptcies, judgments, liens, collections accounts or other indictors of seriously past due accounts
Number and severity of seriously past due items
General account payment histories
Debts Outstanding---30%
Present balances owed on revolving and installment accounts
Credit utilization---percentage of credit lines currently being used (For example, an account that has a $1000 credit limit and $999 of that credit is outstanding, this may affect your credit score negatively).
Percentage of installment loans that are paid (For example, your FICO score is better if you have paid off the majority of any installment loans).
Types of accounts that have balances
Total number of accounts that do have balances
Length of Credit History---15%
Date oldest open account was opened
Total length of time credit has been reported for a consumer (longer the better)
Date since last account activity
Recent Credit Extended---10%
Proportion of recently opened accounts relative to the total number of open accounts on profile (opening a lot of new accounts may be interpreted as sign that you are overextended)
Number of recent credit inquiries (When you are applying for credit, each time a lender views your credit report a record is left, and it may adversely affect your credit score)
Time since the credit inquiries
Payment record following any past negative payment history
Variety of Credit Types Being Used---10%
Number and proportion of credit card accounts, installment loans, and mortgages relative to each other (using one type of credit is generally frowned upon)
|
