In the United States, the FICO score is used to measure consumer risk. The credit score is a very important number, at least if you will need to borrow money. This score is used to gauge your creditworthiness, it shows whether you are a reliable borrower, and it shows if you pay on time, the number of years you’ve carried debt balance and if you have ever defaulted on paying back the debt you owe. Basically, Credit scores help lenders evaluate whether they want to do business with you.

 

So on today’s show, I will be talking about factors that can affect your FICO score:

 

FACTORS THAT DETERMINE YOUR CREDITWORTHINESS:

1. Payment History

2. Credit Utilization Rate

3. Length of Credit History

4. Credit Mix

5. New Account

 

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