What affects the FICO credit score?  This is a question that I am asked quite often.  So I asked Credit Restoration NW to help me out and I am going to share with you what the experts shared with me.

Payment History: (35%)

• Be sure to pay all installment and revolving accounts BEFORE the statement closing date. 
• Never let payments go beyond 30 days late. 
• One 30 day late can lower the credit score up to 100 points. 
• A single 90 day late can damage the score as much as a bankruptcy.

Debt vs Available Credit:  (30%)

• This is primarily concerning revolving (credit cards) debt.
• For optimum scoring, the monthly debt should be paid down to under 10% of available credit line.
• Never let the unpaid balance exceed 50% of available credit.
• Maxed our credit card debt really hurts the credit score.
• Pay down credit cards that are at or near credit limits first.

Length of Credit History: (15%)

• The longer the good credit history, the better.
• Do not close out old credit cards and use at least every 6 months.

Mix of Credit - (10%) A mixture is best:

• 3 to 5 revolving credit cards.
• A mortgage account.
• Auto loan.
• Equity lines of credit.

Number of Credit Inquires (10%)

• Inquiries affect the score for 1 year.
• Inquiries can cost 0-50 pints.
• Score is only reduced for first 10 inquiries in one year
• Auto & mortgage inquiries have a 14 day buffer period and are treated as 1
• Some inquiries don't count; such as personal, job related, insurance and account reviews.