Upon What Information Is A Credit Score Based

   Upon what information is a credit score based

• Payment History: Approximately 35% of your score is based on your Payment History. Does your credit report show frequent late payments, judgments or bankruptcy? Late payments are an automatic "score-killer.
  
• Outstanding Debt: – How many outstanding balances appear on your credit report?
  
• What is the average balance?:  What is the ratio of total balances to total credit limits on revolving debt (i.e. credit cards)?
  
• Payment information on many types of accounts: According to the information provided by the Fair & Isaac, the creator of FICO credit score, about 10% of your credit score is based on: 
  What kinds of credit accounts you have, and how many of each. The score is a complex formula that takes into account both the types of account, their mix and the total number of credit accounts you have under your name.
  Credit account types include: Credit cards (such as Visa, MasterCard, American Express and Discover),  Retail accounts (credit from stores where you do business, such as department store credit cards), Installment loans (loans where you make regular payments, such as car loans), Finance company accounts and Mortgage loans.
  
•  Public record and collection items:— reports of events such as bankruptcies, judgments, suits, liens, wage attachments and collection items. These are considered quite serious, although older items will count less than more recent ones.
  
•  How many accounts show no late payments: A good track record on most of your credit accounts will increase your credit score.
  
• Length of Credit History: About 15% of your score is based on Length of Credit History.  In general, a longer credit history will increase your score. However, even people with short credit histories may get high scores, depending on how the rest of the credit report looks.
  
• How long your credit accounts have been established: The score considers both the age of your oldest account and an average age of all your accounts.  About 10% of your score is based on New Accounts. However, opening several credit accounts in a short period of time does represent greater risk — especially for people who do not have a long-established credit history. This also extends to requests for credit, as indicated by "inquiries" to the credit reporting agencies — an inquiry is a request by a lender to get a copy of your credit report.
   It is not recommended that you open new accounts just to "diversify" your credit profile.
  
  
  
  List of the most significant reasons why the score was not better.
  
• Account payment history is too new to rate
• Date of last inquiry too recent
• Delinquency on accounts
• Lack of recent bank revolving information
• Lack of recent installment loan information
• Length of credit history is too short
• Length of revolving credit history is too short
• No recent bankcard balances.
• No recent non-mortgage balance information.
• No recent revolving balances
• Number of accounts with delinquency
• Number of established accounts
• Proportion of balances to credit limits is too high on revolving accounts
• Proportion of loan balances to loan amounts is too high
• Serious delinquency, derogatory public record, or collection
• Time since delinquency is too recent or unknown
• Time since derogatory public record or collection is too recent
• Time since most recent account opened is too short.
• Too few accounts with recent payment information
• Too few bank revolving accounts
• Too many accounts opened in last 12 months
• Too many bank or national revolving accounts with balances
• Too many recent inquiries in last 12 months            
  
  

Credit Score Ranges

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