The FICO score comes from the Fair Isaac Corporation. They are the creators of the first credit scoring system that came about in 1958. The three credit bureaus in the U.S. have their own score like the FICO scores, but for the most part of the FICO score is dominated by the ways used to identify individuals, a credit score.
Many people like the FICO score because it does not factor in doing something thatwould bias the guests. For example, sex, marital status, or national origin. But what the FICO score is made up of five different categories with no category where more than 35% of the total score.
The five categories are: payment history, credit usage, length of credit history, the type of credit used, and past credit applications.
Your payment history makes up 35% (and is the biggest part) of the total picture, andBasically means paying your bills on or before they are due. The more late or missed payments you have, the more affect FICO score.
The credit-utilization represents around 30% and the ratio of loans to debt that you have.
The length of credit history makes 15% and the amount of time you have had credit, and more importantly, how much time you have your bills paid on time.
They want to be sure that your credit history contains noFailure to maximize your score, in addition to paying your bills on time and maintaining a low level equilibrium. The only way is to check the creditworthiness of a loan results from each of these credit bureaus order, and they checked for errors. You also need an active role in your finances by budgeting and not make too many purchases on your credit card use.
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