Just released information related to your FICO Credit Scoring
redefines the analysis performed by Credit Rating Agencies in
evaluating the Creditworthiness of their prospective clients.
Here are the factors and the associated weightings that are
applied to a credit decision:
1) PAYMENT HISTORY (35% of Total Credit Score)
2) AMOUNT OWNED RELATIVE TO CREDIT LIMIT (30%)
3) LENGTH OF CREDIT HISTORY (15%)
4) FREQUENCY OF APPLYING FOR CREDIT (10%)
5) MIX OF CREDIT (10%)
So this means the longer you have good payment history,
the less you owe on your credit cards, the less you apply
for credit and the mix of credit cards, mortgage/auto loans
the more favorably you FICO score may be (assuming great
payoff and ratios to income.)
Here is why Credit Rating Agencies are so parsimonious in
assigning high scores. The credit rating agencies assign
delinquency rate to us all that correspond with our credit
worthiness. Here are the expected Delinquency Rates at the
various credit scores:
800+ 1%
750-799 2%
700-749 5%
600-650 15%
600-649 31%
550-599 51%
500-549 71%
less than 500 87%
Credit lendors have tightened their standards for lending
and have reduced available credit balances for many clients.
A great credit rating is a valuable asset.
Manage your credit score wisely!!!!
Sheila McKinney
