Your FICO credit score is a three-digit numerical representation of the information contained within your credit report. It ranges from 300 to 850. According to Fair Isaac Co., inventors of the FICO scoring model, your FICO credit score measures five key credit areas.
Identification
Thirty-five percent of your FICO score reflects how well you pay your debts. How much debt you owe is 30 percent of the score. The length of your credit history is 15 percent, the types of credit you have is 10 percent and the amount of new credit opened accounts for the final 10 percent.
Considerations
Your payment history has the largest impact on your FICO score and explains why it's so important to make all of your payments on time. Late payments will drop your score. How much it drops will depend on the other factors present on your credit report.
Warning
Credit report errors can lower your score. Check your credit report at least once a year. If you find mistakes, you have the right under the Fair Credit Reporting Act (FCRA) to file a dispute with the credit bureaus to have that data removed or corrected. The bureaus have up to 30 days to investigate your dispute and make changes.
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