What Makes Up Your FICO Score
What Makes Up Your FICO Credit Score:
35%: payment history
30%: amounts owed
15%: length of credit history
10%: new credit
10%: types of credit used
Why Does a Good Score Matter?
House or apartment hunting: Whether you are renting or buying your first place, both landlords and mortgage lenders will require a good credit score.
Employment: Prospective employers can review their candidates’ credit history as a gauge of character and responsibility; it is possible for an employer to rescind their job offer is a new hire has bad credit.
Better interest rates: A high score will qualify a borrower for the lowest interest rates on mortgages, car loans, and even insurance.