How
the FICO Credit Score is Calculated
Introduction
If you are interested in getting your credit
under control, you will need information about your credit
score and about how your credit score is calculated. This
article is prepared to provide you specific information about
how your credit score is calculated.
A Close Up Look at Credit Score Calculations
When all is said and done, your credit score,
is based on your past credit history above all else. At the
outset, your credit history is considered and reviewed in
detail in the computation of your credit score. From this
review, that all-important number ultimately is assigned.
The final score is based on how long you
have had credit as well as what types of credit, your payment
history and if you have had any late payments, and existing
loans or credit and the status of those accounts. Although
employment and wages play a big role in extending credit,
these items—plus a few others—determine your credit
score.
From your history, your credit score will
be assigned. Potential creditors will use the report and score,
wages, job history, and other financial issues to determine
your credit rating and whether you can handle more credit
or loans. If they determine that you can, your credit score
is often used to determine your interest rate and type of
credit you will get. rewrite
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