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No one knows the exact algorithm behind the FICO scoring system. However, they provide the guidelines based on which your FICO scores could be influenced.<\/p>
While FICO doesn’t uncover its scoring recipe, it gives valuable rules about the elements that matter for scores.\u00a0<\/p>
Generally, paying your debts on time and keeping your credits lines below a certain level will help you keep a healthy FICO score.<\/p>
Repayment history: Always make sure all your payments on the debts are on or before the due date to keep your FICO scores above par.\u00a0<\/p>
Failing to miss your payment or any accounts being in collects can really have a huge negative impact on your scores.<\/p>
Utilization of your credit: This is the amount of accessible credit you are utilizing.\u00a0<\/p>
If you are maxing out your credit cards every month, your credit score could have a negative impact. Less utilization of the credit limit will have better chances of improving your FICO credit score.<\/p>
Period of credit: This alludes to how long you’ve had credit and the normal age of your credit accounts.<\/p>
Late applications for credit (10%): When you apply for a loan or credit card the lender or the credit card company will have a hard credit check done.\u00a0<\/p>
Applying for the loan or credit cards regularly would also have a negative impact on your FICO scores, as every time you apply there would be a hard inquiry on credit and your scores are dropped by a few points after every hard check.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t