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The Fair Isaac Corp. developed the widely-used FICO credit scoring system. You can learn more at www.myfico.com.
Typically, FICO scores are usually between 300 and 850. Below 620 may be viewed as a red flag. Above 650 is usually considered to be a good FICO score.
Your FICO score is affected by a number of factors including:
- Timeliness in paying bills
- Number of credit cards
- Credit-use ratio
Your credit-use ratio compares your credit card balance to your credit limits.
If your credit cards have combined limits of $10,000 and you have $2,000 in outstanding charges, your credit-use ratio is 20 percent. Using less than 30 percent of your available credit is generally viewed as a positive factor.
Your credit score is available to you for free one time each year. Get it by visiting www.annualcreditreport.com or by calling 877-322-8228. Watch out for companies that promise a free credit report, but require you to enroll in a service that charges a fee.
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