your credit history FICO score raise your score

Your Credit History/FICO Score

The primary tool lenders use to evaluate your credit history is the "FICO" scoring system. In general, a score of 720 or above is excellent and may even get you a discounted rate. A score of 680 to 720 is very good, 640 to 679 is acceptable, and between 500 to 639 means your file will need special handling and you will pay a higher rate. You may be able to improve your score.

Lenders will also take a closer look if your credit report shows any past bankruptcies, judgments, liens or collections.

Your FICO score is based on the following factors:

What is the FICO score based on?
Your FICO score is based on the following factors:

35%: Payment history. Recent late payments are scored lower than old late payments. A 30-day late payment made just a month ago will count more than a 90-day late payment from five years ago. Negative public records such as bankruptcy, foreclosures and liens will lower your score considerably.

30%: Amounts owed creditors. Total debt is considered as well as how many accounts with balances. How much of total credit line is charged up? You will receive a lower score if many accounts are charged up near their limits.

15%: Length of time credit has been established. Score considers age of your oldest account as well as average age of all your accounts. Higher scores for longer history.

10%: Inquiries showing recent application for new credit. How many new accounts, recent inquiries. Adding new accounts could lower score.

10%: Mix of credit, whether retail accounts, installment loans, finance company accounts and mortgage loans.

TIP: Many consumers think it's a great idea to close all their old credit and store cards, thinking this will increase their FICO scores. However, this often has the oppostive effect: by closing old accounts that were paid on time, you are also erasing your good credit history and may actually lower your score. Thus, I advise against closing more than 2 or 3 old accounts at a time, and please don't even do that if you have minimal credit to begin with.