Business & Finance Credit

The Role Your Credit History Plays in Your FICO Score

In the terms of your FICO score your credit history refers to the how long you have had credit.
 The weight it carries in the FICO score calculation is 15%.
 The weight is carries is due the relation the longer a person has used credit the less risk they represent.
 There are two different factors considered in regards to your credit history.
  The first is the average age of all your accounts.
 You can find this on your own and to do so all you will need is a copy of your credit report.
 In the section dedicated to your accounts in your credit report, you will find when each account was open.
 Just do the math to figure out how many years it has been and average all the accounts.
 The second is the age of your oldest account.
 If you don't know which account is your oldest, you will want to follow the process from above but instead look for the account that was opened first.
  A common mistake many people will make is they do not know this information before they decide to close an account.
 If you close the account that is the oldest you will be hurting both factors.
 Another is to apply for credit if you don't need it.
 Today, consumers are faced with a new credit card offer almost every time they purchase at a major retail chain.
 Applying for all these accounts will also drag down your average age.
    There is little you can do to improve this section of the FICO score formula besides avoid the common mistakes above.
 Also, if you do not carry a balance on your oldest account you might want to use it from time to time.
 Certain accounts sometimes close accounts due to inactivity.
 This method will protect this account from being closed and protect your credit history.
  
SHARE
RELATED POSTS on "Business & Finance"
Have You Heard About the Credit Card Bill Stimulus Package and How it Can Help You?
Have You Heard About the Credit Card Bill Stimulus Package and How it Can Help You?
Credit Repair Service - Is it For You?
Credit Repair Service - Is it For You?
The FTC Provides Resources To Help Consumers Get Out Of Debt
The FTC Provides Resources To Help Consumers Get Out Of Debt
The Short Cut to Credit Card Success - How Credit Comparison Tables Can Half Your Research
The Short Cut to Credit Card Success - How Credit Comparison Tables Can Half Your Research
Fix Your Credit Report Errors
Fix Your Credit Report Errors
Credit Cards with Zero Interest
Credit Cards with Zero Interest
How Business Credit Can Help in Growth of Your Business
How Business Credit Can Help in Growth of Your Business
The Mystery of Credit Card
The Mystery of Credit Card
A Bond Co-Signer's Rights
A Bond Co-Signer's Rights
Canceling Credit Cards and Credit Scores
Canceling Credit Cards and Credit Scores
Most Common Credit Repair Myths Debunked
Most Common Credit Repair Myths Debunked
Credit Counseling - Not Because You're Crazy, Either
Credit Counseling - Not Because You're Crazy, Either
Credit Cards For Poor Credit
Credit Cards For Poor Credit
Credit Card Approval - Some Simple Hints
Credit Card Approval - Some Simple Hints
Low Interest Balance Transfer Credit Cards - Is it a Great Deal Or is it a Trap?
Low Interest Balance Transfer Credit Cards - Is it a Great Deal Or is it a Trap?
Instant Approval Credit Cards And Why They Are Highly Beneficial
Instant Approval Credit Cards And Why They Are Highly Beneficial
Credit Card Debt Relief and FICO Scores
Credit Card Debt Relief and FICO Scores
The ‘80/20’ Rule in Ghana’s Banking Industry, is it Helping Us?
The ‘80/20’ Rule in Ghana’s Banking Industry, is it Helping Us?
Your Credit Card & the Interest Charges - Do You Really Understand the Interest Calculations?
Your Credit Card & the Interest Charges - Do You Really Understand the Interest Calculations?
3 Credit Mistakes That Can Ruin Your Credit Fast
3 Credit Mistakes That Can Ruin Your Credit Fast
How to Get a 740 Credit Score
How to Get a 740 Credit Score
Your Credit Report and Credit Score Explained
Your Credit Report and Credit Score Explained
Debt Settlement Claims - Take All Big Statements With a Pinch of Salt
Debt Settlement Claims - Take All Big Statements With a Pinch of Salt

Leave Your Reply

*