... Continued from part 1: There are five different categories of data that this information can be grouped into. There are specific percentages that reflect how important each individual category is when it comes to determining your overall FICO score.

New Credit Accounts

This category also includes the number of credit inquiries that have been recent. This category also includes the time since your most recent account opening, sorted by the type of account. This category also includes the time since the last credit inquiry. This category also includes the re establishment of a positive credit history after you have had any past payment problems.

Credit Types Used

This category will include the number of accounts that you have taken out and what type of account they are. This category also includes the presence, the prevalence of and the recent information on these accounts. These accounts include but are not limited to consumer financing accounts, mortgage accounts, installment loan accounts and credit card accounts.

Here are some other things to keep in mind:

Your FICO score is going to take into consideration all of these pieces of information rather than just a couple of them. No single one piece of information or two pieces of information is going to determine your FICO credit score.

The importance of any of the factors influencing your credit score with FICO is going to depend on all of the information overall that is being included in your credit report. One given factor may be more important for one persona than for someone else depending on credit history, however. As the information contained within your credit score changes, the importance of the contributing factors to your credit score are also going to change as well. The levels of importance listed in these blog entries are just based on the general public, meaning that they will be different from one person to the next. What is the most important thing is the mix of your information, which is going to vary from one person to the next over a period of time.

Your FICO score is only a result of the information contained within your credit report, but lenders will look at other things besides just your FICO credit score. Your score is going to consider all of the information that is found within your credit report including the positive information and the negative information. What this means is that bad things will lower your score, but re-establishing your good track record will be able to positively impact your score.

Keep all of things in mind and hopefully your FICO score will finally make more sense to you, now that you understand how it's calculated and why.

Photo Credits: Qiao-Da-Ye?????

Originally posted 2009-09-04 03:00:35. Republished by Blog Post Promoter

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