Cause & Effects
A FICO score is a type of credit score created by the Fair Isaac Corporation (FICO). It's widely used by lenders to assess the credit risk of a borrower. The FICO score ranges from 300 to 850, and it's based on five major factors:
Did you know that a significant portion of your overall FICO score—specifically 35%—is determined by your history of on-time bill payments? This aspect of your credit score plays a crucial role in assessing your creditworthiness and can significantly impact your ability to secure loans or favorable interest rates. Consistently making payments on time demonstrates financial responsibility and reliability to lenders. Conversely, late payments can negatively affect your score, making it essential to stay organized and prioritize your bill management. By understanding the importance of timely payments, you can better navigate your financial journey and work toward achieving a healthier credit profile.
If Payment History is just one of 5 key factors that makes a fico score, and is worth 35% of your score what are the other factors that make up the reminder 65%?
