{"id":601,"date":"2019-07-15T13:28:47","date_gmt":"2019-07-15T18:28:47","guid":{"rendered":"http:\/\/formationcu.com\/?p=601"},"modified":"2025-04-26T00:53:39","modified_gmt":"2025-04-26T05:53:39","slug":"jeds-corner-how-your-credit-score-is-factored","status":"publish","type":"post","link":"https:\/\/formationcu.com\/?p=601","title":{"rendered":"Jed’s Corner – How Your Credit Score Is Factored"},"content":{"rendered":"

Members frequently ask, “<\/span>What can I do to increase my credit score?”<\/p>\n

The FICO scoring model has a credit range from 300-850. Your credit file is composed of revolving credit, consisting of credit and department store cards, and installment credit types like auto, mortgage, and personal loans.<\/p>\n

Your actual credit score is determined by the following: the amount you owe versus your credit limit and loan amounts. This is referred to as credit utilization and accounts for 30% of your credit score.<\/p>\n

10% of your credit score is determined by new credit or loans recently taken out.\u00a0 15% is derived from the longevity of your credit history. The longer a loan is open in your credit file with positive payment history, the higher it drives your credit score. This factor is one of the strongest indicators lenders look for in the underwriting of a loan request. Having a good mix of revolving and installment credit accounts for 10% of your score.<\/p>\n

The final factor in determining your credit score is your payment history. This accounts for 35% of your score and is the most crucial part of the overall matrix.\u00a0 On-time payments are crucial as one late payment can drastically reduce your credit score and take months of positive payment history to correct.<\/span><\/p>\n

Tips for increasing your credit score:<\/span><\/p>\n