Question

What items does a FICO score consider?

Answer 1

A FICO score considers payment history, credit utilization, length of credit history, new credit, and credit mix.

Step-by-step explanation:

A FICO score considers several factors to determine an individual's creditworthiness. These factors include:

1. Payment History: This includes whether you make payments on time, have any late payments, or have any accounts in collections.
2. Credit Utilization: This refers to the percentage of available credit you are using. Keeping credit utilization low is considered favorable.
3. Length of Credit History: The longer your credit history, the more information there is to assess your creditworthiness.
4. New Credit: Opening multiple new credit accounts in a short period of time can lower your FICO score.
5. Credit Mix: Having a mix of different types of credit (such as credit cards, mortgages, and loans) can be beneficial for your FICO score.