Fico Score – Your Credit History and Applications
Your credit history makes up 15% of your FICO score. Lenders can worry when you have a short history with good credit score. The longer the better is the rule here. Two factors are considered: the oldest account and its age, the average age of all your accounts.
The smallest percent of your FICO score is determined by your applications for credit, 10 percent. The basic concept shows that opening multiply accounts in a short period of time is seen as a negative. The questions that arise for a lender are: why would a person need all this credit and why right now? This creates uncertainty for lenders and the borrower is viewed as a higher risk in their FICO score. Many factors are considered here:
The number of new accounts opened
The number of accounts you have recently applied for
The time from one application to the next
The time it has been since you open your last account
The important thing to note is the negative effect of a consistent viewing of your credit report by lenders can pose. This implies a person has applied for several accounts recently. Individual looking at his or hers credit report doesn’t affect your score.
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