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Understanding Credit Reports


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How Are Credit Scores Calculated?  How Are Credit Scores Calculated

Payment History - 35%

The timely manner in which a consumer did or did not repay the debt. This includes all types of credit accounts, late or missed payments, and public records and collection items. 

Outstanding Debt- 30%

The total dollar amount of debt currently owed. For credit cards, this means the total amount owed across all accounts in relation to the total credit limit. When a high percentage of the credit limit is already used, this can indicate overextension and a greater likelihood of future missed payments. Keeping credit card balances well below the limits can help this part of the score. 

Length of Credit History - 15%

The amount of time the consumer has held credit accounts. This includes how long ago your accounts were established. A longer history helps your credit score. 

Pursuit of New Credit - 10%

Opening many new accounts in a short period may hurt a credit score. 

Types of Credit in Use - 10%

Analysis of the types of credit a person has in use comparing installment loans, credit cards, retail accounts, mortgage loans, charge cards, etc.

Information NOT Calculated in a FICO Credit Score

  • Race, color, religion, national origin
  • Sex, marital status
  • Age
  • Salary, occupation, title, employer, employment history
  • Where you live
  • Overall wealth (assets an individual may have) 

A person’s credit score is not the only variable that may be considered by a lender when applying for a loan. Although not included in the credit score, some of the variables noted here may still be considered when a lender reviews a loan application.


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For individuals and families trying to figure out how to pay off debts, American Consumer Credit Counseling (ACCC) provides non-profit credit counseling, credit card reduction and consumer debt management services for consumers nationwide. Our certified credit counselors provide financial education for anyone wanting to learn how to get out of debt and how to eliminate credit card debt. As alternative to expensive debt restructuring services and credit card debt consolidation loans, our debt management plans are a kind of credit card relief program that have helped thousands of people pay down credit card debt by consolidating payments and reducing interest rates and finances charges. We also offer bankruptcy counseling, housing counseling and other financial education services for help getting out of debt.

American Consumer Credit Counseling - Consolidate Debts - Better Business Bureau American Consumer Credit Counseling - Consolidate Debts - Mass Housing Approved National Industry Standards for Homeownership Education and Counseling American Consumer Credit Counseling - Consolidate Debts  - Council on Accreditation American Consumer Credit Counseling - Consolidate Debts  - NFCC Member