Mortgages & Creative Financing

FICO Scores and your credit makeup

Expertise: Real Estate Marketing, Personal Development, Real Estate News & Commentary, Mortgages & Creative Financing, Real Estate Investing Basics, Landlording & Rental Properties, Flipping Houses, Personal Finance, Business Management
301 Articles Written
Someone today asked me about FICO scores, and we had a great talk. I thought I’d reprint a post from the forums to help you all out. Toney posted the following, which has some great info. The components of FICO are: Payment History – 35% Amounts Owed – 30% Length of Credit History – 15% [...] View the full article: FICO Scores and your credit makeup on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

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Joshua Dorkin is a serial entrepreneur, investor, podcaster, publisher, educator, and co-author of How to Invest in Real Estate. He started BiggerPockets to help democratize the real estate investing landscape for himself and others, aiming to make it accessible for everyone, regardless of income or education. Today, BiggerPockets is the premier real estate investing website online with over one million members and reaching over 70 million people with the message of financial freedom through real estate investing. Joshua, along with his wife and three daughters, make their home in Denver, Colorado, and spend any time they can traveling, exploring, and adventuring. Read more about Joshua’s story in 5280 and Inc.com.

    Steve "The Debt Settlement Man" B
    Replied over 12 years ago
    great post. when it comes to your credit score the hard nut to crack as far as raising the score is the 30% debt to credit limit ratio (amounts owed) which through minimum payments can take 20-30+ years. as far as your payment histroy is concerned any negative remarks will not have much of a negative bearing on your score after 24 months. you fico score is supposed to be a snapshot in time of your current creditworthiness and they use the last 2 years of your history to determine your current credit score Reply Report comment
    Steve "The Debt Settlement Man" B
    Replied over 12 years ago
    great post. when it comes to your credit score the hard nut to crack as far as raising the score is the 30% debt to credit limit ratio (amounts owed) which through minimum payments can take 20-30+ years. as far as your payment histroy is concerned any negative remarks will not have much of a negative bearing on your score after 24 months. you fico score is supposed to be a snapshot in time of your current creditworthiness and they use the last 2 years of your history to determine your current credit score
    Ong
    Replied almost 12 years ago
    Great information, you provided here, I do not have a good credit. It’s good to have a good credit in order for the lenders to see you as credit worthiness. Thanks.
    Dustin Callahan
    Replied almost 12 years ago
    What about business credit? If an LLC builds up good business credit can’t loans be taken out in the name of the business without your personal FICO score having anything to do with the loan.
    Chihuahua teacup
    Replied almost 12 years ago
    wish i had come across this before…brill advice
    Kyle
    Replied over 11 years ago
    Your credit mix can be another thing that might negatively effect your FICO score. You are supposed to try to get a healthy mix of credit. What that is not defined, but having 20 credit cards is not one. You will be better off if you have an auto loan, two credit cards, and a mortgage.
    Kyle
    Replied over 11 years ago
    Your credit mix can be another thing that might negatively effect your FICO score. You are supposed to try to get a healthy mix of credit. What that is not defined, but having 20 credit cards is not one. You will be better off if you have an auto loan, two credit cards, and a mortgage.
    Kyle
    Replied over 11 years ago
    Your credit mix can be another thing that might negatively effect your FICO score. You are supposed to try to get a healthy mix of credit. What that is not defined, but having 20 credit cards is not one. You will be better off if you have an auto loan, two credit cards, and a mortgage.
    Kyle
    Replied over 11 years ago
    Your credit mix can be another thing that might negatively effect your FICO score. You are supposed to try to get a healthy mix of credit. What that is not defined, but having 20 credit cards is not one. You will be better off if you have an auto loan, two credit cards, and a mortgage. Reply Report comment
    Kyle
    Replied over 11 years ago
    Your credit mix can be another thing that might negatively effect your FICO score. You are supposed to try to get a healthy mix of credit. What that is not defined, but having 20 credit cards is not one. You will be better off if you have an auto loan, two credit cards, and a mortgage.