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All credit reports are reported by the three major credit bureaus, Equifax, Experian and
TransUnion. The lowest possible score is 300, while the highest is 850.
The final number is a composite of individual ratings in five categories:
Payment history (35% of the rating)
Length of credit history (15%)
New credit (10%)
Types of credit used (10%)
Debt (30%)
Income is not a factor. "A person can have a very high income and never pay their bills,"
explained Craig Watts, public affairs manager for Fair Isaac.
Fair Isaac calculates a FICO score based on the data provided by each credit bureau. It's not
uncommon to see up to a 50-point differential between ratings. The reason: Bureaus collect
data at different times of the month, and one bureau may have inaccurate information.
Most Credit Reports will give FACTORS used in determining the score; up to 5 factors may be
listed. The factors are in sequential order of the item reported most recently that negatively
impacted your FICO Score. Although you may have 10 years of making your payments on
time the first factor maybe length of time accounts have been established. This means the
last factor bearing an unfavorable impact on your credit was newly established credit, it does
not mean after 10 years they consider your credit newly established.
TIPS
By paying off accounts monthly, you may avoid interest but you may never build your
payment history. If 0 (zero) balance is always reported you never demonstrate the ability to
payoff any significant debt you may accumulate. An example is a mortgage is one of the
biggest ways to increase you FICO, this is because it will demonstrate a large balance owed
that every month shows a balance and paid 12 times annually.
Keep your credit cards below 40% of your available balance, the closer to your credit card
limit you are the more negative impact it has on your FICO score (credit score).
TransUnion. The lowest possible score is 300, while the highest is 850.
The final number is a composite of individual ratings in five categories:
Payment history (35% of the rating)
Length of credit history (15%)
New credit (10%)
Types of credit used (10%)
Debt (30%)
Income is not a factor. "A person can have a very high income and never pay their bills,"
explained Craig Watts, public affairs manager for Fair Isaac.
Fair Isaac calculates a FICO score based on the data provided by each credit bureau. It's not
uncommon to see up to a 50-point differential between ratings. The reason: Bureaus collect
data at different times of the month, and one bureau may have inaccurate information.
Most Credit Reports will give FACTORS used in determining the score; up to 5 factors may be
listed. The factors are in sequential order of the item reported most recently that negatively
impacted your FICO Score. Although you may have 10 years of making your payments on
time the first factor maybe length of time accounts have been established. This means the
last factor bearing an unfavorable impact on your credit was newly established credit, it does
not mean after 10 years they consider your credit newly established.
TIPS
By paying off accounts monthly, you may avoid interest but you may never build your
payment history. If 0 (zero) balance is always reported you never demonstrate the ability to
payoff any significant debt you may accumulate. An example is a mortgage is one of the
biggest ways to increase you FICO, this is because it will demonstrate a large balance owed
that every month shows a balance and paid 12 times annually.
Keep your credit cards below 40% of your available balance, the closer to your credit card
limit you are the more negative impact it has on your FICO score (credit score).