New Book – Chapter on Credit Scores – Part Two
I am EXCITED and PUMPED about my new book for high school students, college students, and twenty-somethings – What Everyone Should Know About Money Before They Enter THE REAL WORLD.
To celebrate the release of this book, I am sharing one of the chapters of this book (see all of the chapter titles HERE)
Here is another section of the “Credit Scores” chapter:
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Everyone Should Know …
The key measurements that determine a credit score.
The credit reporting agencies are secretive as to how they calculate credit scores, but it is well known that credit scores are directly impacted by the following items:
- Type of credit issued
- Revolving debt (credit card)
- Installment debt (anything with payments and a pay-off – car loan, boat loan, student loan, etc.)
- Age of the credit relationship
- Amount of credit one can obtain (total of all credit limits)
- Amount of credit one has consumed (percentage of total credit limit)
- Payment timeliness
- Requests for credit
- Outstanding judgments
According to FICO’s publication, Understanding Your FICO Score, a FICO credit score is determined in the following way for the general population.
FICO scoring breakdown [from FICO’s publication, Understanding Your Credit Score]
For people who are just establishing credit, it will be different since payment history is not yet available.
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More from this chapter tomorrow!
Read the entire series HERE
Learn more about the book and RESERVE YOUR COPY (ships 12/15!) at its dedicated website HERE