Comments Off on How to Decipher FICO Scores

Payment History accounts for 35 percent. That’s the biggest factor, so people who are getting deeper in debt each month may still pay their credit cards on time. Check out the Available Credit summary. Once it gets used up nobody gets paid on time.
Debt accounts for 30 percent. How much is owed and how much is owed compared to how much credit is granted are both significant.
Long term credit history accounts for 15 percent. Old credit is good and will raise the score.
New Credit accounts for 10 percent and is evaluated as suspicious. A lot of new credit or credit inquiries lower FICO scores.
Credit variety account for 10 percent of your score. People with varied credit types do best in this category.
Good scores happen when people pay on time, keep debts way under credit limits, keep old credit cards active, don’t take out cash advances and don’t use pre-paid debit cards. Bottom line: the score is a reasonably good predictor of future credit success. Be careful, however, because your needs are NEVER average.

Look at the entire report:

Understanding debt collection and background screening best practices can save your business big money. Building up front applicant screening into your business processes costs you very little, but saves you so much in the end. If you haven’t already, partner with a full service debt collection and applicant screening company to guide your business to a place of security and prosperity.


Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment ScreeningBusiness Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.