Archive for August 9, 2010

Deciphering The Credit Score Formula – What Makes Up Your Credit Score?

1) Types of Credit in Use: About 10% of your score 

Credit score calculations consist of complex formulas that take into account both the types of account, their mix and the total number of credit accounts in your name.

Credit account types include: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

2)  Pattern of Credit Use: About 10% of your score

The number of new accounts you have and the type of  the account  is part of your score.

Also how long has it been since you opened a new account and the type of account it was.