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