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