Credit Scores Demystified

Guest post by Dan Lucchesi, owner and founder, The Lucchesi Property Group

If you’ve decided to get your credit on track, getting started can feel a bit daunting. After all, it can sometimes seem as if credit agencies want to keep you in the dark about how scores are calculated. Not to worry — with some diligence on your part and a little insight into the world of credit score-keeping, you can get back on track in 2020.

Credit scores follow an algorithm first developed by the data analytics company FICO years ago. For a while, credit scores weren’t the primary force behind a credit decision, but over time, the impact of a credit score became more and more important. Most every loan program available today has a minimum credit score.

There are five characteristics of your credit history that make up your three-digit score: your payment history, account balances, the length of your credit history, the types of credit used and how often you’ve applied for new credit. Continue reading “Credit Scores Demystified”