Credit Score (FICO)

Understand your Credit Score (FICO)
There are several simple tips that if someone adapts these habits, they can succeed in managing their personal finance and establish an excellent credit score.

• What makes up your credit score?

• 35% - Payment History
• 30% - Debt
• 15% - Life/Length of Credit History
• 10% - New Credit
• 10% - Types of Credit Used

• Always make your payments on time (this will save you money on your interest as well).
• Try to pay-off your credit in full per cycle.
• Try to make more than the minimum amount due.
• Stay within your credit limit. In order to establish excellent credit score, try to use only 10% of your credit availability per card. There is a misconception of using 10% of your total credit limit, but applying 10% per card has a different positive impact, because each lender monitors your credit history separately.

• i.e. if you have a credit card with $1,000 limit, spend only maximum of $100 (10%) on that card per billing cycle.
• To stay on top of your credit card charges, setup alerts to remind you of your credit availability. Take advantage of available tools that your credit card provider(s) offer.
• Review your interest rates and annual fees on a regular basis.
• Review your credit report annually. Free annual credit report can be obtained here: https://www.annualcreditreport.com/cra/index.jsp