There are a number of components that are used to comprise a fico score such as how you pay your debts, the number of accounts you have, and the types of credit accounts you have. Other items that are factored into this process is assessing whether or not you have judgments, bankruptcies, legal action, as well as the amount of debt you owe.
Everyone is not completely clear regarding the calculation of a Fico Score regarding what does not go into this calculation. Some people actually mix up things that loan officers consider when they are deciding whether or not to approve you for a loan, which are items not considered to calculate your score. Still others confuse items which are not, by law, used to determine your score.
Some of the things which do not go into the determination of the Fico score are the religion, race, national origin, sex and marital status. These cannot be used because they are barred based on certain laws that have been established. If someone is the recipient of government assistance, that too, cannot be used to determine your fico scores.
You have to be of a certain age to legally establish credit but your age is not used in the computation of your score. A lending officer may take a look at your salary as well as the type of job you occupy, along with your place of employment and your previous employment history but not of these things are used to compute your fico score.
Even your neighborhood has nothing to do with your fico score. The amount of interest that you pay on your credit card accounts is of no importance when it comes to determining your fico score.
If you are a landlord this is another item that is not considered when it comes to your fico score. Whether or not you are a recipient of child support has no bearing on your fico score.
Once your fico score is determined it is not written in stone. You can improve your score or your score can take a dive depending upon how you manage your credit file. If you have a low score due to derogatory payments you can reverse this trend over time by simply starting to pay your debts on time on a consistent basis. This may take some time but eventually you will begin to see the light at the end of the tunnel. Paying down your debt also works in your favor as well.
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