{"id":191,"date":"2018-09-05T09:59:13","date_gmt":"2018-09-05T13:59:13","guid":{"rendered":"http:\/\/blogs.uww.edu\/financialliteracycenter\/?p=191"},"modified":"2018-09-05T10:01:50","modified_gmt":"2018-09-05T14:01:50","slug":"how-is-a-fico-credit-score-determined","status":"publish","type":"post","link":"https:\/\/blogs.uww.edu\/financialliteracycenter\/2018\/09\/05\/how-is-a-fico-credit-score-determined\/","title":{"rendered":"How is a FICO Credit Score Determined?"},"content":{"rendered":"

FICO CREDIT SCORE BREAKDOWN<\/strong><\/p>\n

\"\"<\/p>\n

When wanting to establish credit or raise your credit score,\u00a0 a basic understanding of the comprising elements can assist you when making financial decisions.\u00a0 A higher credit score leads to future benefits including lower interest rates, higher loan limits, and overall approval to credit card and loan applications.<\/p>\n

How is a FICO credit score determined?<\/p>\n

    \n
  1. Payment History<\/strong> (35%).\u00a0 The most important factor in calculating credit scores is payment history.\u00a0History is used to forecast future behaviors.\u00a0 Making consistent and on-time payments to your credit cards and loans is one of the best ways to improve your credit score.<\/li>\n
  2. Amounts Owed<\/strong> (30%).\u00a0 FICO views those who habitually max out their credit cards as people who cannot handle debt responsibly.\u00a0 Borrowers should maintain low credit card balances, and although there is no exact utilization ratio, many financial experts refer to the ‘30% rule’.\u00a0 Example – If your credit card limit is $1,000, try not to charge over $300.<\/li>\n
  3. Credit Length<\/strong> (15%).\u00a0 A longer credit history offers more information on financial behavior.\u00a0 It is impossible for a person who is new to credit to have an excellent score, as it takes time.\u00a0 Those with credit should maintain their long-standing accounts.<\/li>\n
  4. Types of Credit<\/strong> (10%).\u00a0 A mix of credit (accounts, credit cards, and installment loans) is taken into consideration to determine a credit score.\u00a0 A borrower with a good mix of credit generally represents less risk for lenders.<\/li>\n
  5. New Credit<\/strong> (10%).\u00a0 Borrowers should avoid opening too many credit lines at the same time, for such financial behavior might suggest financial trouble.\u00a0 Consumers are encouraged to apply for and open new accounts only when needed.<\/li>\n<\/ol>\n

    For more resources and information on credit, visit the UWW Financial Literacy Center<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    FICO CREDIT SCORE BREAKDOWN When wanting to establish credit or raise your credit score,\u00a0 a basic understanding of the comprising elements can assist you when making financial decisions.\u00a0 A higher credit score leads to future benefits including lower interest rates, higher loan limits, and overall approval to credit card and loan applications. How is a … <\/p>\n

    Continue reading “How is a FICO Credit Score Determined?”<\/span><\/a><\/p>\n","protected":false},"author":7648,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[881887],"tags":[881919,499,881902],"class_list":["post-191","post","type-post","status-publish","format-standard","hentry","category-credit","tag-creditscorebreakdown","tag-uww","tag-uwwfinancialliteracycenter"],"_links":{"self":[{"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/posts\/191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/users\/7648"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/comments?post=191"}],"version-history":[{"count":10,"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/posts\/191\/revisions"}],"predecessor-version":[{"id":204,"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/posts\/191\/revisions\/204"}],"wp:attachment":[{"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/media?parent=191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/categories?post=191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.uww.edu\/financialliteracycenter\/wp-json\/wp\/v2\/tags?post=191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}