Some time ago FICO shared basic information about how a consumer’s FICO score is calculated.
The information is presented here in order of importance according to FICO.
(Information marked with a * would be obtained from your home loan application and is not considered in your FICO score)
1. Major derogatory items on your report (bankruptcy, collections, foreclosure, slowpays)
2. Time at present job
3. Occupation (Professionals are given heavier weight)*
4. Time at present address
5. Ratio of balances to available credit lines (lower is better)
6. Are you a homeowner? (If you are this is heavily weighted)*
7. Number of recent inquiries
8. Age (50+ is the best)
9. Number of credit lines on your report
10. Years you have had a credit in the credit bureau database.
buyers are all too aware of the importance of good credit scores but
most are unfamiliar with not only how they are calculated but also what
kind of penalties are incurred for credit missteps.
This table estimates the effects of specific credit activities on credit scores
ranges are estimates based on hypothetical credit situations; the
precise effects might differ based on the consumer’s overall credit
We have helped countless home buyers find
the right home with the right loan program and they all have one thing
in common, they contacted us.