1. How to Improve Your Credit Score FICO ©2012, TESCCC Economics Unit 5, Lesson 2

2. FICO Score FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining your FICO score. ©2012, TESCCC

3. Payment History Account payment information on credit cards, retail accounts, installment loans, mortgage, etc. Presence of adverse public records (bankruptcy, judgments, suits, liens, wage attachments, etc.) Delinquency (past due items) Severity of delinquency (how long past due) Number of past due items on file Number of accounts paid as agreed ©2012, TESCCC

4. Amounts Owed Amount owing on accounts Number of accounts with balances Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts) Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans) ©2012, TESCCC

5. Length of Credit History Length of time accounts have been opened Length of time since any activity on accounts ©2012, TESCCC

6. New Credit Number of accounts recently opened Number of recent credit inquiries for new accounts Time since last credit inquiry Re-establishment of a positive credit history following past payment problems ©2012, TESCCC

7. Types of Credit Used Number of different types of accounts such as credit cards, retail accounts, installment loans, and mortgage ©2012, TESCCC