There are many ways to work on your credit and one of them includes first understanding the basics of the situation. This includes learning how your credit score is calculated.

The first thing to understand is that failing to make a payment on your bills will make your score go down. But, it is more complex then that. The older the account the worse it can be.

But realize that you have to know your credit score so that you are information all about it.

Things that affect a credit score:

• Defaulting on a loan
• Failure to pay utilities on time
• Medical bills
• Lack of insurance

And more.

Credit Scores are Calculated

A credit score is calculated with an algorithm, and this algorithm is calculated by the Fair Issue Corporation otherwise known as FICO. This company takes all three credit bureau reports into account and specializing in collect ghostier about your financial history.

The secret is never told-meaning they don’t tell us how they calculate an algorithm. 

How Your Credit Score is Calculated

Your Payments-35% of your credit score is made up of your payment history.

Debt Ratio-20% of your score is made up of how long you have had credit and the length of your credit.

Inquiries– these make a certain amount of your credit score.