Understanding Credit

How Your Credit Score Is Derived

Developed in 1956, a Fair Isaac Score is a three digit number ranging from 300-850, according to the following risk factors:

Payment History (35% of score)

  • Payment information on many types of accounts
  • Public record and collection items
  • Details on late or missed payments
  • Specifically, how late they were, how much was owed, how recently they occurred and how many there are

Amounts Owed (30% of score)

  • Amount owed on all accounts
  • Amount owed on different types of accounts
  • Whether you are showing a balance on certain types of accounts
  • How much of the total credit line is being used
  • How much of installment loan accounts is still owed

Length of Credit History (15% of score)

  • How long your credit accounts have been established, in general
  • How long specific credit accounts have been established
  • How long it has been since you used certain accounts

New Credit & Inquiries (10% of score)

  • What kinds of credit accounts you have and how many of each
  • Total number of accounts you have

Types of Credit (10% of score)

  • How many new accounts you have
  • How long it has been since you opened a new account
  • How many recent requests for credit you have made

Fair Isaac Resolution Resources Helpline (800) 777-2066
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Mandy Whigham
Mortgage Consultant