If you are in the market to buy a home one ver important component of your interest rate is your FICO score.
How are FICO scores determined.
Answer:
The formula itself is complicated and the FICO company (Fair Isaac Corp) keeps it secret. But here are the basic components:
The formula itself is complicated and the FICO company (Fair Isaac Corp) keeps it secret. But here are the basic components:
- A. 35% Past Delinquencies
Your payment history - B. 30% Debt Ratio
Your revolving account balances divided by their limits, as a percentage - C. 15% Average Age of File
Length of your account history - D. 10% Mix of Credit
Mix of account types on your report - E. 10% Inquiries
# times you applied for credit in the last 12 months
This info is courtesy of Derrick Evens of Perfect Credentials.
http://www.perfectcredentials.com/
http://www.perfectcredentials.com/
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