I am a new credit card user in the U.S. and I want to learn more about FICO scores?
This particular score reflects on your past credit decisions and requires you to have enough information in your credit report to generate a score. This usually means that you have at least one credit card account that you have been using for at least the last six months. FICO’sFICO’s core components consist of
Current debt- This parameter considers an amount a person owes as any form of debt. The available credit line to you also plays an important role. For example, if a person takes $5000 as credit.
New credit- This component shows you have taken credits in the recent past. A high debt increases
Length of credit history shows how long you have been using your credit card. The more extended history you have, the better it is for your score. But if you have a short credit history, you can try to get other sections as high as possible to get an overall good score.
Credit mix- This parameter shows the various kind of debts you have taken, such as credit cards, home loans, auto loans, or any other credit products that indicate how diversified your risks are