FREE CREDIT REPORT
By admin - 9 April, 2018
As outlined here, your FICO® credit score is largely impacted by five factors:
- 35% Payment History
- 30% Amounts Owed
- 15% Length of Credit History
- 10% Types of Credit In Use (Credit Mix)
- 10% New Credit
If your credit portfolio includes finance company accounts, the scoring model may consider you a higher credit risk. Why? Finance company accounts are most often acquired by consumers who can’t manage their other credit accounts without them.
Unfair as it may seem, the FICO® score model may penalize those who apply for and obtain this type of credit.
Additionally, if you only have credit card, gas card, or store card accounts (revolving accounts), and have no record of repaying an automobile or mortgage account (installment account) over a period of years, your score may also be negatively impacted.
Bottom line, just like it’s wise to diversify your retirement accounts, it’s equally wise to have a diversified credit portfolio containing a good mix of different types of credit accounts responsibly.
By reducing the amount of debt you owe could increase the 30% of your Credit Profile.
Call 800-648-5771 (CLICK TO CALL) today for help.