How the buyers FICO Score is Calculated
February 16, 2022
How the buyers FICO Score is Calculated
The five main factors that influence a FICO score are:
Credit history - Payment History counts for 35% of the score. The later the payment, a month versus a week, the more your score gets reduced.
Credit utilization – counts for 30% of the FICO score. Only use 30% or less of available credit monthly.
Credit History- counts for 15%. The longer you own a credit card, the more it improves your score, provided you pay if off every month.
Credit Use – is worth 10%. FICO looks at how many forms of credit you have- credit cards, auto, mortgage, utilities, etc and how well you deep up with them.
New Credit – 10% of the FICO score. It’s better to spread applications out over time. If you apply for several credit cards at the same time it may indicate that you are using one to pay off others and that is a negative.
Jasna Hoyt
