Tuesday, September 13, 2011

Flex That Fico!

The key to getting the most results the fastest from your workout is targeting the right muscle groups. Have you been targeting your FICO to build your financial fitness? Your FICO score (credit score) is your muscle in the financial fitness world. In this blog, let’s talk about how to target the right areas specifically your FICO score. Here are your target areas regarding your FICO:


  1. Payment history- 35 percent of your FICO is based on history, making the repayment of past debt the most important factor in calculating credit scores. According to FICO, past long-term behavior is used to forecast future long-term behavior.

  2. Debt amounts- 30 percent is based on total outstanding debt. Credit cards count the most in this category.

  3. Length of credit history- 15 percent is based on how long each account has been open and how recently the account's most recent action occurred.

  4. New credit and credit mix- 10 percent is based on each. FICO suggests that borrowers only take on additional credit when they must have it or when it makes sense financially. Credit mix is simply having different forms of credit on your credit report such as mortgage, auto loans, credit cards, unsecured lines of credit, etc…


Paying with cash needs to be the first choice when it comes to building a tradition of financially fit choices, but sometimes that’s just not an option. Knowing the ins and outs of your credit score will help in making better credit and financial choices. In the words of Francis Bacon, “knowledge is power.” So now FLEX that FICO!


The mint makes the money first, it’s up to you to make it last!

-Jainie-

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2 comments:

  1. Reuben ASeptember 15, 2011 at 4:53 PM

    Thank you Jainie for the fitness tips and information concerning FICO scores. It is just amazing how your score is determined and the value it plays in our everday life. If you don't already know, credit scores are used in a number of different area now days. It could used by a future employee, it could be used in the calculation for auto insurance, and many other ways to determine credit worthiness and your ability to take care your business


    Reuben A, Athens, Texas Trust Credit Union

    ReplyDelete
  2. DebiCSeptember 20, 2011 at 2:29 PM

    Thanks Jainie,
    Did you know that there are 3 major reporting agencies? They are Experian, Trans Union and Equifax.

    Debi C, Cedar Hill, Texas Trust Credit Union

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