|
Your Credit Score Explained |
|
 No one knows the exact criteria for how FICO formulates credit scores, however here are some general criteria that will help you understand improve your score:
|
Number of credit cards: |
|
2-4 is best |
|
How long ago you got your first loan: |
|
The longer the better |
|
The number of loans or credit cards you applied for in the last year: |
|
The fewer the better |
|
How recently you opened a new loan or credit card: |
|
The longer the better |
|
Number of your loans and/or credit cards that currently have a balance: |
|
The fewer the better |
|
Total balances on all other loans and credit cards combined: |
|
You need a reasonable but moderately small balance |
|
The amount of time since you last missed a loan or credit card payment: |
|
The longer the better |
|
The most delinquent you have ever been on a loan or credit card payment: |
|
The less the better |
|
Number of loans and/or credit cards are currently past due: |
|
The fewer the better, 0 is absolutely the best |
|
Your credit card balances compared to your total credit card limits: |
|
The smaller the better |
|
Negative financial events in the last 10 years such as: bankruptcy, tax liens, foreclosure, repossession, or accounts referred to collection agency: |
|
Any or all of these events would be very negative. |
|
FICO CREDIT SCORES RANGE FROM 350-850 AND ARE RATED AS FOLLOWS: |
|
Excellent
FICO 750 - 850
Good
FICO 660 - 749
Fair
FICO 620 - 659
Poor
FICO 350 - 619 | |
