How is your Credit Score Calculated?
Breaking down a credit score.
Hey guys, Heather Connor here, team leader and main broker for Black Diamond Resort Group brokered through exp Realty. Today we are going to go further into the buyer series, and talk about how your credit score is calculated. Now according to Fair Isaac, they are the makers of the FICO score, they’re pretty tight-lipped about exactly how the scores are calculated. They do give us the various criteria and how they weigh them. For example, they show that 35% of the score is based on payment history. 30% is based on how much you owe. 15% length of credit history that you have available. 10% is new credit, and 10% is types of credit used. What we mean by types of credit used is that they’d like to see that you had various types of credit, meaning a mortgage, credit card, etc.
I hope you have found this helpful and if you have any additional questions feel free to reach out to me on heatherconnor.com, or at 970-209-8050.