What goes into creating your FICO Score?

Most people (74%) believe your credit score is based on your income.  Not True!

  • 35% is payment history
    • The most important factor in your credit score is your payment history. Making payments on time is key in keeping and getting your score as high as possible.
  • 30% is the amount owed
    • Keep your credit card balances low, at the most have 30% owed and 70% available credit.
  • 15% is the history of your credit
    • How long have you had credit established? If you have all new credit, this could hurt you.
  • 10% is new credit (less than 6 months old)
    • Getting new credit can help someone with little or no credit, if all of your credit is established, not to worry
  • 10% type of credit
    • Diversity is best, a car loan, home loan, and a couple of credit cards.

Great credit requires a delicate balance.  Not too much on credit cards, not only a home loan;  But a balance, on time payments and the time to prove you are credit worthy.