Most financial institutions, including Parkside Credit Union, use the credit score of the loan applicant as part of the decision when both approving and pricing credit. The credit score most used is the FICO score. What goes into the credit score? Data from your credit report is divided into five major categories. The scoring factors on each category varies, some weighing more than others.
35 percent = Payment History: Your account payment history of current vs. missed or late payments. Also in this category are any public records.
30 percent = Amount Owed: This compares the amount owed to the amount of credit available. The closer ones balance is to their revolving line of credit limit(s), the greater the risk is to the lender.
15percent = Length of Credit History: It looks at how long you have had credit and the average age of credit and account activity.
10 percent = New Credit: It reviews newly opened accounts as well as recent inquires.
10 percent = Types of Credit Used: The mixture of credit, such as Mortgage, installment, and revolving.
Although you can’t raise your score overnight, there are things you can do to help to increase it fairly quickly. Things like, paying down your revolving lines, and making timely payments will help to increase your score the quickest.