| The FICO was introduced in 1989 by Minneapolis | | | | Your outstanding balance and all the types of |
| Fair Isaac Corporation. The credit score assigns | | | | accounts the money is owned on are also taken |
| numerical values to data in your credit report and | | | | into consideration. The credit card debt is |
| can be from 350 up to 850. The higher your | | | | weighted more heavily as people who have it, |
| credit score is - the better chances to get the | | | | have greater repayment risk. |
| best credit cards you have. | | | | 3. The length of your credit history is also very |
| Your credit score is constantly upgraded every | | | | important component of your credit score. Long |
| time you pay your bills or open new accounts. | | | | credit history provides more information about |
| Your credit score may vary in different credit | | | | your future financial behavior, so the longer your |
| agencies as information may be reported with | | | | accounts have been active, the better. So it is a |
| some delay. | | | | good idea to maintain longstanding accounts. |
| If you know how your credit score is formed, it | | | | 4. If you often require new lines of credit, you will |
| will be easier for you to improve it, so there are | | | | also damage your credit score. The potential |
| 5 the most important components of your credit | | | | creditors will think that you have a lack of cash, |
| score: | | | | so you will probably have difficulties paying back in |
| 1. You credit history. Your previous financial | | | | the future. |
| behavior can really predict your future behavior, | | | | 5. If you use different types of credit like a car |
| that's why it is the main component that builds | | | | loan, few credit cards and a mortgage, you don't |
| your <a href=" target="_blank">credit | | | | present risk to lenders. There is no exact formula, |
| score</a>. If you have always paid your bills | | | | but some types of credit are less favorable that |
| on time and have not missed them, creditors will | | | | others. For example, major credit cards like |
| trust you and will think that you will continue being | | | | Discover, Visa, MasterCard or American Express |
| a responsible borrower. | | | | are looked upon more favorably than credit cards |
| If you didn't pay your bills on time or missed | | | | that are issued by small retailers and department |
| them in the past, it will influence your credit score | | | | stores. |
| negatively and you will not be trusted by potential | | | | Now that you know what your credit score |
| creditors. | | | | consist of, it will be easier for you to rise |
| 2. Your debt also plays a great role in forming | | | | therefore; you will get only best credit card offers |
| your credit score. If you already have a big | | | | and will be able to enjoy the benefits of these |
| amount of debt, that gives a sign to the | | | | cards! |
| creditors, that you have troubles paying back. | | | | |