Tierra Destiny Reid
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NOTES ALONG
MY JOURNEY

"The beautiful thing about living your truth is that there is no right or wrong. It's your truth. How you express it is where the choice comes in to play."

 

 

How credit is calculated

“How your credit score is calculated”

The most used credit scoring company is the Fair Isaac Corporation “FICO”. Over 80% of creditors use FICO scoring. Below is the breakdown and factors of what makes up your FICO score. Credit is based off several different factors however payment history makes up 35% which is why it's very important your accounts are “paid as agreed” or “paid on time”. By making only one payment late can negatively affect your credit score. A good FICO score is 750+ on a scale 300 to 850.


How credit scores are calculated

Payment History:
Accounts paid as agreed
Number of past due items
Current negative marks
Amounts owed

Secured vs unsecured 

Number of accounts with balances:
Balance to credit
Balance to loan amount

Length of credit:
Time since account opened
Time since account activity 

New Credit:
Recent credit inquires
# of inquires
Recent opened accounts
Time of recent opening

Types of credit:
Mortgage
Installment loans
Retail cards
Credit cards


Santasia H.~

Connect with Santasia:

Website: www.creditdonesimple.com
Twitter Handle: @mscandihill
Instagram Handle: @i_am_candihill
Facebook Handle: Santasia "Candi" Hill
Linked In: Santasia L. Hill