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Financial facts concerning your monetary resources are compiled from your application for credit and other sources. Facts include how consistent you have been in paying your bills, the quantity and nature of accounts you have obtained, payments paid late, collection actions, debt outstanding, age of your accounts, and additional info. Applying the Fair Isaac statistical measures or framework, creditors match these facts to the credit results of consumers with similar profiles and designate points for any factor that aids in forecasting who is it most plausible for them to pay back an amount they owe. This is where we get the term "FICO Score" which means a credit score resulting from the Fair Isaac Corporation (FICO) model.
Credit info is considered based upon what type it is and how old the information is. The sooner the related data, the more significant it is to the overall rating. For example, something that was late by as much as 90 days a while ago may be significantly less weighted than a much more recent 30 day late. What type of data it is is also weighted: past payment performance (most important weight-35%), utilizationn of credit (next biggest-30%), length of credit history (third most significant-15%), types of credit in use (least important-10%) and number of new credit inquiries (equally least important-10%).
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