To get an excellent FICO rating you need to be disciplined. Also, people must know what comprises a FICO rating. Knowing the FICO rating calculation will permit you to make day to day choices to improve and maintain the rating.
The first component of the rating is the consumer’s payments to their creditors. This carries the biggest influence since people who are delinquent have an increased rate of default. Harmful items against the rating are usually 30 day delinquent payments.
The next component of the FICO rating is the debt to credit ratio and it looks at how far a consumer is in debt . The more a consumer is in debt the greater risk they have to their lines of credit and the lesser the possible rating.
The next component of a FICO rating is your credit history and takes into consideration the age of the accounts. Creditors like to have a long account history and will also aid a person’s FICO rating.
The next component is your credit inquiers. An inquiry is when an individual tries to get a new loan.
The last component is credit mix. This is the judgment of the kinds of accounts a consumers utlizes.