What are the main factors to influence the Fair Isaac Co (FICO) credit score scale?


The Fair Isaac Co (FICO) credit score scale is named after the Fair Isaac Corporation who developed this credit score algorithm.

Your FICO credit score is very important in the way that it influences the way you will receive financing. The FICO score scale ranges from 300 to 850, with the medium FICO for the US being around 720. The Fair Isaac Co score scale is by far the most widely used credit score scale in the US.

Important Fair Isaac Co (FICO) Credit Score Factors

  1. Punctuality of payment

    35% of your FICO score is based on your payment history. Reoccurring late payments are very bad in terms of FICO; having foreclosure or bankruptcy on the record may get you a 100 points drop in the FICO score.

  2. Amount of debt

    Your debt will count as 30% of a Fair Isaac Co (FICO) credit score. It is difficult to understand how FICO score is affected by different debt features, since even your credit card balance is taken into consideration. At the same time, it turns out that closing old accounts affects negatively the FICO score, while having many accounts with little balance keeps it up.

  3. Length of credit history

    Your credit history counts as much as 15% towards the FICO score. The more history you have, the better. Lenders appreciate people with significant credit history. Credit history signifies experience as a credit consumer.

  4. Types of credit used

    10% of your FICO will go towards whether or not your debt is secured and/or unsecured. If you show ability to handle both, your FICO will be positively affected.

  5. Loan applications

    Another 10% will go to your loan applications. If multiple lender requests show you have been looking for more credit - possibly more than you could carry, your FICO score may be hurt.

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