When Fair Isaac, FICO, the company that created the most widely used credit score, in fact the secret between us, is that there is no other credit score that’s used widely by lenders. Not even the new Vantage score that’s being promoted by the bureau’s, we’ll leave that as a sidebar.
But when Fair Isaac is talking about the five factors that go into their credit score they’re essentially talking about these: you’re saying 35 percent is payment history – how well you’ve met your obligations. 30 percent is your utilization ratio. 15 percent is your length of credit history which is to say how long you’ve had credit.
So, guys like me in their fifties we’ve had credit since 1984, I get bonus points. But if you’re somebody who just come out a college you don’t have a leg up in that factor. That’s okay cause with any luck you’re gonna get old like me one day and one of the rewards is extra credit score points for that factor. That’s 15 percent of your credit score. 10 percent is new credit. 10 percent is about how, you know, whether you’ve applied for new credit. By the way, your debited points for that and then the other 10 percent is your credit max. You have a mortgage and a car loan and credit cards? Or do you only have credit cards? If you have a better credit mix, you’re going to have a better credit score.