FICO Score Calculation:
35% – Payment history – Does the consumer make on-time and regular payments
30% – Amount owed – This includes the relationship of utilized credit against the total approved credit
15% – Length of credit history – How long the consumer has been using credit for purchases
10% – Short term debt – New debt acquired over the past 12 months compared to the amount of debt reduced over the last 12 months. A sudden “burst” of applying for and opening a credit card will actually reduce your score.
10% – What kind of debt do you have – Normal revolving or installment debt from a traditional lender will help your score while “payday loans” or higher risk loans will actually decrease your score.