In the United States economy, your credit score (Credit Score) works as your financial reputation. Good credit opens doors to buying a house with a low interest rate, obtaining a loan for your business, or even renting an apartment without huge deposits.
The 5 key factors that determine your FICO score
To improve your credit, you must first understand how it is calculated. Your score is based on:
- Payment History (35%): Paying your bills on time is most important. A single late payment of over 30 days can significantly lower your score.
- Credit Utilization (30%): The percentage of your available credit limit that you are using. It is recommended to keep your card usage below 30% of each card's limit.
- Length of Credit History (15%): The age of your open accounts. Older accounts demonstrate stability.
- Types of Credit (10%): Having a mix of revolving credit (credit cards) and installment loans (auto, mortgages).
- New Credit (10%): How many accounts or credit inquiries you have made recently. Avoid applying for multiple cards at once.
Dispute errors on your credit report
Thousands of people in the United States have low credit scores due to credit bureau errors: duplicated debts, accounts that are not theirs, or paid balances reported as active. You have the legal right to dispute and demand correction of this data under the Fair Credit Reporting Act (FCRA). We help you analyze your reports and launch formal, organized claims with Equifax, Experian, and TransUnion.