Credit Scores

Credit Score

Credit Scores are how you are judged for a loan. The credit score is based on the information in your credit report that shows how likely you are to pay a loan back on time. Most lenders use the FICO score. Your FICO score determine whether you qualify for a loan and what interest rate you'll pay. Credit scores range from 300 - 850

FICO Credit Scores are determined from different credit data in your credit report. This information is grouped into five categories and each category carries a certain amount of weight as shown below:
35% Payment History
30% Amount Owed
15% Length Of Credit History
10% New Credit
10% Types of Credit

Payment History has the most bearing, 35%, on your credit score. It includes payment information on credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc. Adverse public records like bankruptcy, judgements, suits, liens, wage attachments, collection items, delinquencies and the severity of delinquency.

Amounts Owed is the second most important part, 30%, of your credit score. Here they look at the amount owing on your accounts, types of accounts, number of accounts with balances, proportion of credit lines used and proportion of installment loan amounts still owing.

Length of Credit History is next with 15%. These factors include how long accounts have been opened and with revolving credit, the account activity

New Credit accounts for 10% of your score. These will include number of recently opened accounts, type of account, recent credit inquiries, time since recent account opening and reestablishment of credit history following past payment problems

Types of Credit Used is the finla 10 % of your credit score. They include the number of and the various types of accounts credit cards, retail accounts, mortgage and installment loans that you have.