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The exact model they use is a closely guarded secret, but it takes into account:
Your credit payment history - This makes up 35 % of your score. It takes into account payment information on
different types of accounts such as credit cards, store credits, installment loans (car loans) and mortgage loans. It factors in how late you have been on
a payment. A 30 day late payment is not as bad a 60 day late payment however a 60 day late payment made a couple of days ago far outweighs a 90 day late
payment made 4 years ago. Late payments do not automatically affect your credit score. If on
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average your credit history is good, one or two late payments will not have an impact on your credit score. Having a perfect payment track does not mean a perfect score. Your score is based on other factors.
Bankruptcies, foreclosures, suits, wage garnishments, liens and judgments have huge impacts on your credit scores. Bankruptcies stay on your credit report for 7-10 years depending on the type filed.
How much debt you have - This accounts for 30 % of your FICO score. The amount owed and on which type of account is
taking into account. In other words your FICO score takes into account the total amount you owe and on what type of account such as credit cards and
installment loans. It looks at how many accounts have a balance and how much of the total debt is on credit cards or other revolving accounts. A large
number of accounts that have balances indicate that the individual has a higher risk of over-extension. Someone with a large percentage of the debt on
credit cards or other revolving accounts indicates that they are likely to have trouble making payments in the future.
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