Margaryta Booth Principal Broker

King Neptune Statue on the Boardwalk in Virginia Beach

How To Improve Credit Score

How to Improve Your Credit Score and What is your FICO score; how do they calculate it?

Below is the formula (Basic) for calculating you credit score  “Fair Isaac Corporation Score” (FICO) , is this exactly right: No.  because if we as everyday people could calculate our scores we could improve them on a regular basis with out help.  So in actuality it is more complicated than what we have listed below, but this is the general idea.


  • Payment History –  35% Impact

Paying your debt on time proves to weigh the greatest. Any late payments, judgments, or charge-offs all negatively impact your score. Recent delinquencies impact greater than mishaps in the past.

  • Amounts Owed –  30% Impact

Try to keep credit balances as close to zero as possible. Paying off revolving debt (credit cards) monthly sends an excellent message to creditors and in turn increases your score.

  • Credit History –  15% Impact

Though it is important to have trade lines, it’s also important to have seasoned liabilities. Showing creditors your ability to repay debt over the length of time proves that you are an excellent credit candidate and shows a positive reflection on your credit score.

  • New Credit –  10% Impact

Recently opened accounts and the type of the account can adversely affect your credit. Remember the longer the relationship the better the score.

  • Types of Credit –  10% Impact

Mortgage debt has the most positive impact, installment loans second and revolving debt third. Pay off revolving debt monthly, and pay as requested for other loans and your score will impress.