Question

What information goes into determining your FICO score and what can you do to improve it?

Answer 1

Informations which goes into calculation of your FICO score are as follows-

1. Length of credit history-it is the length of the credit history of the client

2. Payment history-it is the history of the payment made by client.

3. Amount which is Owed-it is the total amount of credit taken

4. Credit mix-it is the different type of credit makes present in the portfolio

5. New credit-it is the amount of credit which have been newly added to the portfolio by the client.

A client can improve his FICO score by working up on regular and uniform payment of credit at particular intervals. They can also improve the creditworthiness by regular payments and never defaulting on their debt schedule. they should be habitual enough to pay upon their credit on time and they should also be looking to save more in order to maintain a emergency fund to service their debt.