While everybody wants to get the highest possible FICO score, some people actually know what their credit score is. Let's take a look at just how the score is calculated.
Your settlement history is the only important consideration for identifying what your FICO score would be. This reflects 35% of your total ranking. The more accounts you've actually charged on time, and the longer you've actually been late on the account, the higher your total ranking.
The next most critical aspect of how you use credit is 30 percent of your overall score. If you're looking to get the best possible credit score, you should try to stay away from credit card balances.
The length of your credit report is 15 percent of your FICO score. Many that have a long history of paying their costs on time are generously compensated with high credit scores. And if you make a little error, they're definitely not going to damage your credit score as badly as if you didn't have a history of paying quickly.
More: Read How to get the highest possible credit score
Fresh credit accounts and demands for 10% of your overall score. While opening a new account can be great in a long-term credit repair plan, it is important to note that this will definitely lower your credit score in the short term. Lenders select the credit-building aspect they use so that the timeframe will range from 14 to 45 days.
10% of your overall score is the type of credit you're using. If possible, you should try to stay away from money firms, as this may lower your credit score. To get the highest credit score, you need to have about four revolving accounts, and you also need to have a credit history in installments.
Your credit history age constitutes 15% of your FICO score. While opening a new account can be a great part of a long-term credit remediation plan, it is important to remember that this will definitely lower your credit score in the short term. Representing 10% of your total score is the type of credit you use. To get the perfect credit score, you need to have about four revolving accounts, and you also need to have a credit history of installation.
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