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