Archive for March, 2011
Part 2 – Risks to Closing Accounts to Improve Your FICO score
Friday, March 11th, 2011
The second reason closing accounts could hurt your good FICO score or might not help you improve your FICO score is your credit history. Your Credit History makes up 15% of your FICO score. If you think you are going to improve your credit mix by closing mix you could hurt this. Your credit history […]
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Part 1 – Risks to Closing Accounts to Improve Your FICO score
Friday, March 11th, 2011
If you are looking to improve your FICO score a common mistake is to close accounts. People look at the fact you are judged on your credit mix and Fair Isaac likes to see a well round use of credit. Actually, your credit mix makes up 10% of your score. They think that closing the […]
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Tip 4 – Improving a FICO Score – Apply for Credit
Thursday, March 10th, 2011
Applying for credit should be done carefully to maintain a good FICO score. This is because 10% of your FICO score is your applications for credit and is measured by how many times lenders view your credit report. A good FICO score usually means you aren’t going out and applying to every new credit offer […]
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Tip Three on How to Improve Your FICO score
Thursday, March 10th, 2011
How much you owe is taken heavily account when figuring a FICO score. It equates to 30% of your FICO score and you need to understand how it is figured. Utilization is the method of measuring how much you owe. This is debt divided by your credit limits. The lower the better is always the […]
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Tip Two on How to Improve a FICO score
Thursday, March 10th, 2011
This may seem as a simple way to improve your FICO score, paying your bills on time. In another post How Your FICO Score Works, you’ll find the large portion of your score is dedicated to your Payment History. That is why it is so important. Late payments are always an indication of a possible […]
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Step One on How to Improve Your FICO score
Tuesday, March 8th, 2011
Where to start? There are some many things that go into the FICO score calculation. If you remember from the previous post How your FICO score works, everything that goes into your FICO score is comes off your credit report. You should start by reviewing your credit reports and getting one from the three different […]
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What is a “Healthy Credit Mix?”
Tuesday, March 8th, 2011
Your FICO score has many different factors that come together to generate your score. One is your Credit Mix and it makes up to 10% of the FICO score. The score wants to see a “healthy mix” of credit. What is does that mean? They like to see you using many different forms of credit. […]
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Fico Score – Your Credit History and Applications
Monday, March 7th, 2011
Your credit history makes up 15% of your FICO score. Lenders can worry when you have a short history with good credit score. The longer the better is the rule here. Two factors are considered: the oldest account and its age, the average age of all your accounts. The smallest percent of your FICO score […]
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FICO Score, Utilization, and How Much is Owed
Monday, March 7th, 2011
How much you owe makes up 30% of your FICO score and is sums of many different accounts like credit cards, car loans, and Mortgages.Another factor that is taken into account in your FICO Score is utilization and is defined as percentage of your balances to credit limits and makes up 30% of your FICO […]
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Fico Score and Your Payment History
Sunday, March 6th, 2011
Your payment history is one of the most important factors in determining your FICO Score. The reason is based on the idea if you pay your bills on time,you are less likely to default. For this reason, payment history makes up 35% of your FICO score. There are three factors that your FICO score considers […]
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Where Did Your Credit Score Come From?
Sunday, March 6th, 2011
The origin of you credit score takes us back to the 1950’s, when Bill Fair and Earl Isaac founded Fair Isaac. The idea behind the company is they would develop mathematical formulas to aid in decision making. The marketable product really came from idea for companies to use their formulas to assess credit risk. The […]
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