Your FICO Score
The FICO measures your credit-worthiness. Underwriters use 3 credit reporting bureaus, Equifax, Experian, and Trans Union. They all determine your score in the these ways:
1. Delinquencies- Delinquencies lower scores, and also scores drop when several credit accounts are opened in a short period of time.
2. History- A long credit history is way better than a newer one! Hone or two revolving accounts makes it harder to evaluate the ability to manage credit, so it lowers you score!.
3. People with “maxed out” cards tend to have trouble making payments, but not always. Too many high balance revolving accounts can indicate over-extension.
4. Special situations like tax liens, bankruptcies, and use of consumer credit agencies will all lower a overall FICO score!
5. Small credit card balances and no late payments show responsibility and you are rewarded by having a higher credit score!