Know the score, your FICO score that is

By
Real Estate Agent

Your credit score or FICO score as it's referred to, is a three-digit number designed to gauge credit worthiness. Lenders use it to assign interest rates on mortgages, credit cards, auto loans etc. The FICO score ranges from 300-850 and is calculated by Fair Issac Corp. using information from the three major credit reporting agencies: TransUnion, Equifax Inc and Experian PLC.
According to Fair Issac, a credit score is made up of five components:

35% reflects payment history, whether you pay your bills on time.

30% reflects amounts currently owed, how your credit limits compare with the balance you carry.

15% reflects length of credit history, the longer the better.

10% reflects newly opened accounts.

10% reflects types of credit used, the mix of accounts.

Although Fair Issac does not allow you to see your credit score free of charge, you are entitled to see your credit report once a year at no cost from each of the credit reporting agencies. You can order a free credit report at Free Report.

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