While the exact formulas are secrets this much is known. Approximately 35% of your score is based on you bill paying habits. 30% is based on how much you owe vs. how much credit you have available. 15% of you score is based on how long you have managed your credit. 10% is based on the mix of credit you have. Having a mix of types of credit is seen as good. Only 10% is based upon your pursuit of new credit.

FICO®
What’s a FICO® score, you ask? A FICO® score, developed by Fair, Isaac®, is the credit score used by creditors to determine your credit risk. If you want to improve your credit report it's important to understand how to improve your FICO® score. You can now find out your FICO® score and learn how to improve it. Know your FICO® score and get the interest rates you deserve

Understanding and Improving Your Credit Score
Here is a great article written by Andrea Villarreal from Better Scores Better Rates. It will help you understand your credit report and imporove your credit score. Read Credit Tips

Other Credit Report Issues
Under Reporting Your Good Information
Here's a little trick your credit card company may use to make you look less attractive to other companies. They will simply not report your credit limit. So what? Well the ratio of how much credit you are using to how much you have available is an important factor in determining your credit score. It's 30% of your entire score. So if your credit card company doesn't tell the credit bureaus what your credit limit is then when Fair Isaac calculates your score they will substitute your highest reported balance for your credit limit. This in many cases makes it look like you are closer to being maxed out than you really are.

This lowers your credit score. And that makes you less attractive to competing credit card companies. Of course it also means you'll pay more for a new home mortgage, your insurance rates may rise, and you may not get hired for that dream job. Other that that, it is probably no big deal.

Identity Theft
Because of identity theft (it's happened to me) you must be aware of what's on your credit report. You should get a copy of each report at least once a year.

Thieves have been known to open up accounts in their victims name and make small purchases and pay the bill. Why? So that they can build up the credit limit before they go for the kill. If you see any irregular activity on your credit report you must report it immediately. There's only one way to know if it's there - you've got to look.

Pre-Approved Credit Offers
Ever wonder where the credit card companies get the information about you that they use in those pre-approved credit offers? Hey, you guessed it; they get it from the credit reporting agencies. If you want to keep getting informed of various credit opportunities you need do nothing, they'll keep on coming. But if you'd like them to stop, pick up your phone and call the automated Opt-Out Request Line at 1-888-567-8688.

The Fair Credit Reporting Act
A little help, please! In 1970 Congress passed the Federal Fair Credit Reporting Act to protect the consumer from credit reporting abuse. It requires that your information be accurate, complete and verifiable and gives you the right to challenge and have removed information that is not accurate, complete or verifiable.

Here's the full text
and an online brochure

Make The Law Work For You
It's up to you to make sure your credit report is accurate. Not only can you challenge the information on your report but you can file a complaint against those reporting it if they don't obey the law.

Need to file a complaint? File it online here

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(Receptionist, Texas)