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FICO SCORES: The Percentage Needed to Succeed

By Karen Anderson
Published: Friday, February 19th, 2010

The Fair Isaac Corporation method of computing for the credit score of a credit account holder is the only official way of computing for credit score. The credit score or FICO score is the numerical equivalence of the narrative credit documentation or credit report. No matter how people may try to understand the process of computing for the FICO score, it is too complicated to comprehend. On the bright side, credit account holders can boost their credit worthiness rating in the simpler side of the equation or through credit reports.

Credit report tips if properly used will definitely insure an increase in the credit worthiness rating of the credit account holder. Among the many credit report tips, there is one universal tip that will apply to any attempt to increase credit worthiness. Expanding the horizons of one’s understanding in the processes of credit bureaus like the FICO scoring is the best tool in making reputations better.

There is a fixed percentage distribution that credit account holders can account for in determining their credit score. Payment history bears the greatest weight at thirty five percent, amount owed at thirty percent, length of credit history at fifteen percent, new credit at ten percent and types of credit at ten percent. Most credit report tips would pertain to the need of mastering the weights of credit history and amount owed since these two factors are already more than half of the credit score.

Payment history is the seven years of actual payment records of the credit account holder. It can be assumed that any credit account holder will be judged accordingly through his or her last seven years of financial activities. Taking care of the whole seven years is the only option of the credit account holder, since in most situations every credit score point and every credit report deviation counts.

Timeliness is the stress of the length of the credit history. The duration that the credit account holder is active in the dealings of credits will account for his or her participation as a credible member of the credit business. People should be involved in the credit business simply because credits can aid people in their future needs. Credit report tips put a stress on this involvement because credit bureaus require seven years of documentable participation to be able to at least give a chance to those who would want to be credit worthy.

Credit report tips from the best credit repair and assistance companies warn creditors in the quality and type of credit that they enter to. Not all credits will cause good effects on the credit reports and credit scores of the credit account holders. Vigilance and critical understanding are required in the new credit accounts that creditors would enter to.

For example, there are credit agreements that would require installment payments. Installment payments will cause long duration of being deemed as someone with unpaid debts. Credit report tips advise creditors to fully pay or at least immediately settle the owed amounts. There are many credit report tips, but the best ones talk about the real deal in credit scoring and credit reporting.

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