Important
Credit Score Factors: What’s Not in a Credit Score?
There are a number of important credit score
factors that you should keep in mind. Through this article,
you are presented with one of the factors that are associated
with your credit score. Specifically, in this article you
are presented with a discussion of what’s not included
or part of a credit score.
In this day and age, there can be a good
deal of confusion over what is and is not part of a credit
score. This article is intended to assist you in coming to
a better understanding of what actually is part of the calculation
of your credit score -- and what is not a part of your calculation
of the credit score.
What’s Part of Your Credit Score
Perhaps as a means of better understanding
what is not a part of your credit score, it is important to
understand and appreciate the primary considerations that
are used in the development of your credit score. The primary
factors that are included in the computation of your credit
score are: types of credit you’ve had and how long,
your payment history, and if you have had any late payments,
as well as the status of any current loans or lines of credit.
What’s Not Part of Your Credit Score
Many people make mistakes when it comes to
trying to understand what is involved in the computation of
your credit report. They make assumptions -- which although
are logical are wrong.
There are a number of factors that a person
might assume is part of the credit score computation which
simply are not. These include such things as utility accounts
(electricity, gas, telephone, cellular phone and the like),
wages and income, savings and investment history. In other
words, at this point in time, the FICO credit score is computed
based primarily upon your usage of revolving credit accounts
and significant loans like those for autos and homes.
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