FICO Score: What It Is and The Main Categories

These percentages are based on the importance of the five categories for the general population. For particular groups – for example, people who have not been using credit long – the importance of these categories may be somewhat different.

Payment History

  • Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
  • Presence of adverse public records (bankruptcy, judgements, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
  • Severity of delinquency (how long past due)
  • Amount past due on delinquent accounts or collection items
  • Time since (recency of) past due items (delinquency), adverse public records (if any), or collection items (if any)
  • Number of past due items on file
  • Number of accounts paid as agreed

Amounts Owed

  • Amount owing on accounts
  • Amount owing on specific types of accounts
  • Lack of a specific type of balance, in some cases
  • Number of accounts with balances
  • Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
  • Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)

Length of Credit History

  • Time since accounts opened
  • Time since accounts opened, by specific type of account
  • Time since account activity

New Credit

  • Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
  • Number of recent credit inquiries
  • Time since recent account opening(s), by type of account
  • Time since credit inquiry(s)
  • Re-establishment of positive credit history following past payment problems

Types of Credit Used

  • Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)


Traditional Vs. Roth IRA: What Are The Differences

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On one of my previous article, I’ve talked about the two types of non-employer sponsored retirement plan, which is the Individual Retirement Arrangement also known as IRA: The Traditional IRA and the Roth IRA. The Roth IRA is fairly new as the plan … [Continue reading]

Traditional Vs Roth IRA: What Are The Similarities

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On one of my previous article, I've talked about the two types of  non-employer sponsored retirement plan, which is the Individual Retirement Arrangement also known as IRA: The Traditional IRA and the Roth IRA. The Roth IRA is fairly new as the … [Continue reading]

Top 4 Reasons Why People Start an Online Business

Easy access to real-time information has made the internet the go-to source for most of us. In addition, the internet has revolutionized the way of doing business influencing and changing the habits of various shoppers. Over 800 million have shopped … [Continue reading]

4 Main Scholarship Search Sites For Selected Minority Students

The cost of going to college has been rising throughout the years and it is becoming less affordable for a lot of families. Most college students use some sort of financial aid to help pay for the costs of college such as student loans, grants, … [Continue reading]

The Early Withdrawal Consequences on a Roth IRA

There might come a time when you'll find yourself in a financial bind and  may not have any other options but to tap your retirement plans. The IRS considers any withdrawals from your retirement plan an early withdrawal or distribution if made … [Continue reading]

How to Report Hobby Income and Expenses on Your Tax Return

Hobbies keep balance in our life. It is an activity that we love and enjoy that help us relieve the stress of our day-to-day lives or a diversion to keep us sane. Although most hobbies are done just for leisure such as listening to music, playing … [Continue reading]

7 Quick Facts About Roth IRA Contributions

In general, contributions to a Roth IRA are made using your after-tax dollars. Thus, there is no upfront tax savings to you, which may seem a bad deal on your current year's finances. However, the key advantage of this type of IRA is if you start … [Continue reading]

2011 Tax Tables and Rates

Every year the tax tables are updated for cost of living allowance (COLA). Your tax filing status determines what tax bracket you're going to be at. Generally speaking, married people filing jointly (MFJ) usually receives the best tax rate. The … [Continue reading]

Guide To Buying Your Home

Deciding when to buy a house is probably one of the toughest decisions that you will make. For most families, home ownership is probably on top of the family’s wish list and coming close to that reality may bring anxiety. The following are a few of … [Continue reading]

Home-Based Business Start-up Guide

There are millions of home-based business in United States and the number is still growing. More and more people are turning into running a home-based business because of the various advantages it presents. Did you know that one of the best ways to … [Continue reading]

My Wife Just Passed the US Citizenship Interview and 6 Tips You Can Use Before and During the Interview

My wife had her US Citizenship interview just two weeks ago and she passed! I know that it was pretty late posting this since I was still thinking on what to include on this article and decided to post tips for those immigrants applying for US … [Continue reading]