Written by Crystal WattscloseAuthor: Crystal Watts Name: Crystal Watts
Email: editorial@wattspublishinggroup.com
Site: http://wattspublishinggroup.com/author/crystalwatts/
About: Crystal Watts is a Digital Media Content Manager and freelance Copywriter. She holds Bachelor of Science Degree in Management and an Associate Degree in Commercial Graphics and Digital Media. Her specialization and expertise include web application technology, information architecture, internet technology, interactive media, social networking, content development, publishing, marketing, public relations, web analytics, reporting, business development, and career development.See Authors Posts (34)

Understanding your credit score and how it is determined can significantly help you when taking steps towards improving that score. Your credit score which is also known as your FICO score is calculated to predict how much of a risk you are as a borrower. FICO stands for Fair Isaac Company, which is the company that created and computes this credit score. There are other companies that also compute credit scores, however, FICO is the most trusted and most used for computing credit scores. The FICO score is able to provide lenders with a general overview of what type of history you have with credit, what type of payer you are, and what are the odds you are going to repay their money and hopefully on time.

Bottom line, the score is used to determine if you will be lent money or not and if so, at what percentage rate. The higher the credit risk, the higher the percentage rate you will be charged for credit.

The credit score is made up by the following:

• Payment History – 35%
• Total Amounts Owed – 30%
• Length of Credit History – 15%
• New Credit – 10%
• Type of Credit in Use – 10%

[ Read More ]