“How are FICO scores determined?”
Answer:
The formula itself is complicated and the FICO company (Fair Isaac Corp) keeps it secret. But here are the basic components:
- A. 35% Past Delinquencies
- Your payment history
- B. 30% Debt Ratio
- Your revolving account balances divided by their limits, as a percentage
- C. 15% Average Age of File
- Length of your account history
- D. 10% Mix of Credit
- Mix of account types on your report
- E. 10% Inquiries
- # times you applied for credit in the last 12 months
This info is courtesy of Derrick Evens from Perfect Credentials. www.PerfectCredentials.com
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