FICO Scores and your credit makeup

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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%
New Credit – 10%
Types of Credit Used – 10%

What can affect your score?

1 – High outstanding debts – keep balances low on credit cards and other revolving credit.
2 – Late payments – note that paying off collction accounts will not remove them from your report. These accounts will stay on for seven years unless you get a letter of deletion from the collector.
3 – New accounts – If you’ve been managing credit for a short time, don’t open too many new accounts too rapidly

About Author

Joshua Dorkin

Joshua Dorkin (@jrdorkin, Google+) founded when he saw a need for free, trustworthy information about real estate investing online. Over the past 12 years, Josh has grown the site from self-funded hobby to full-time job and passion. Today, BiggerPockets brings together over 850,000 members, housing the world’s largest library of real estate content, iTunes’ #1 real estate podcast, and an array of analysis tools, all geared toward helping users succeed.


  1. 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

  2. Dustin Callahan on

    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.

  3. 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.

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