The 5 components of your credit report are:
1️⃣. Payment history. This is about 35% of your FICO score and one of the most important factors in a FICO score. This is why it’s so important to NEVER miss payments.
2️⃣. Amounts owed. The second factor they look at is the amount you owe which is about 30% of your FICO score. It’s important to keep in mind that having credit accounts and owing money does not necessarily make you a high credit risk. This is one of the reasons why it’s a bad idea to buy a car before a home.
3️⃣. Length of credit history. The longer your credit history the better your FICO scores will be. The length of your credit history is about 15% of your score.
4️⃣. Credit mix in use. When considering credit risk, FICO scores consider what mix of credit cards, retail accounts and loans you currently have. This accounts for about 10% of your FICO score.
5️⃣. New Credit. The last factor in your credit is how much new credit you have applied for as opening several accounts in a short period can signal greater risk. This factor is also about 10% of your FICO score.
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Bobbie Files is a Real Estate agent at SUCCESS Real Estate, covering the Bristol, Plymouth and Norfolk County areas