Improving your FICO Score
Improve your credit by improving your FICO Score
SOURCE: Fair Isaac Corporation
FICO scores are calculated according to Fair Isaac Corp.’s proprietary formula.
Here are the factors that influence scores, and the weight the model gives each one.
1. Payment history – 35%
Late payments can do serious damage, since this part accounts for 35 percent of your score.
2. Amount owed - 30%
The amount you owe, in proportion to your available credit, accounts for 30 percent of your score.
3. Length of credit history – 15%
The longer the better; the age of your accounts makes up 15 percent of your score.
4. New credit – 10%
Have you been opening new accounts lately? This could ding your score, as it accounts for 10 percent of the rating.
5. Types of credit used – 10%
The model favors people with a mix of credit, including mortgages, installment loans and credit cards; this accounts for 10 percent of your score.

