Know The Five Factors That Feed FICO This Fall

Know The Five Factors That Feed FICO This Fall.
This five factors helps to enhance  credit score. When you are ready to improve your credit score this this fall, the major ways is to know your  five factors that feed your FICO score.


1.Payment History.One of the major things that help to boost your credit score by about 35 percent is your payment history and therefore you must do all you can, doing this fall to make sure that you make your payment as early as you can. Make automated payments that will come directly from your bank account and this will make sure that you have a good credit history once it can be observed that you do make prompt payment.


2. Balance Owed This in other words account for about 30 percent of your credit score. Try as much as possible to always bring your balanced owed to about 20 percent of the high credit limit. Challenge your self on trying to beat down your credit card debt by paying up your debt and this will increase your credit score.

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3. Length of Credit History.This also accounts for about 15 percent of your total credit score and this can be achieve by making sure you keep all your account active through making sure your credit cards are being used consistently and also make sure you do not close any unused account


4.New Account This accounts for 10 percent of your credit score.Opening many accounts do not increase your credit score at all, it affect your credit score negatively because when you apply for too many credit cards it increase your risk of falling into a financial debt, there by avoid opening too many accounts and limit how you apply for loans and mortgage, all this will increase your credit score.

Reference

1. Master the Five Factors That Feed FICO This Fall. https://www.huffpost.com/entry/master-the-five-factors-t_b_1848793
2. FICO’s 5 Factors: The Components of A Credit Score. https://www.creditcards.com/credit-card-news/help/5-parts-components-fico-credit-score-6000.php

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