How Your Actions Impact Your FICO® Credit Score

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We won’t sugarcoat it — keeping tabs on your FICO® score just isn’t all that exciting. While Fair Isaac — the company responsible for the beloved FICO® score — isn’t giving too much detail on the algorithm front, they do share two important points about your score:

  1. A breakdown of the five factors that make up your score
  2. How much each factor is weighted in the overall calculation (denoted by percentage, but this will vary some from person to person)

This info can provide a good framework for how your financial decisions could impact your score. The five factors used to determine your FICO® Score include:

  • Your payment history (~35% of your score)
  • How much you currently owe (~30% of your score)
  • How long you’ve had credit (~15% of your score)
  • The types of credit you have (~10% of your score)
  • When you last applied for credit (~10% of your score)

Our friends at Sindeo are helping you understand these five factors used when determining your FICO® score. Get the full explanation over on their blog.

This blog post is an excerpt from Sindeo’s “Credit Counts: How Better Credit Can Help You Score a Better Mortgage.” See the first post on understanding your credit report and score here.

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