What are the five categories of FICO?

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What are the five categories of FICO? (59 อ่าน)

18 ม.ค. 2568 18:19

The five categories of FICO typically refer to the factors that determine a person's FICO credit score in personal finance. These categories do not directly apply to SAP FICO, which is a financial and controlling module within SAP ERP. However, here’s an explanation of the five FICO credit score categories for clarity:

<hr />
<h3>1. Payment History (35%)</h3>
<ul>
<li>Definition: A record of whether a person has paid their past credit obligations on time.</li>
<li>Impact: Late payments, defaults, bankruptcies, and collection accounts negatively impact this category.</li>
<li>Relevance: This is the most important factor, as it shows reliability in repaying debts.sap fico Classes in Pune</li>
</ul>
<hr />
<h3>2. Amounts Owed (30%)</h3>
<ul>
<li>Definition: The total amount of credit and loans a person is using compared to their credit limits, known as the credit utilization ratio.</li>
<li>Impact: High credit utilization (using a significant percentage of available credit) can lower the score.</li>
<li>Relevance: Demonstrates how much debt is being carried and how dependent a person is on credit.</li>
</ul>
<hr />
<h3>3. Length of Credit History (15%)</h3>
<ul>
<li>Definition: The age of a person’s credit accounts, including the oldest account, newest account, and the average age of all accounts.</li>
<li>Impact: A longer credit history usually results in a higher score, as it provides more data on borrowing behavior.</li>
<li>Relevance: Shows how experienced someone is with managing credit.</li>
</ul>
<hr />
<h3>4. Credit Mix (10%)</h3>
<ul>
<li>Definition: The variety of credit accounts a person has, such as credit cards, mortgages, auto loans, and retail accounts.</li>
<li>Impact: A mix of different types of credit can positively affect the score.</li>
<li>Relevance: Demonstrates the ability to manage different types of credit responsibly.sap fico Course in Pune</li>
</ul>
<hr />
<h3>5. New Credit (10%)</h3>
<ul>
<li>Definition: The number of recently opened credit accounts and the number of recent credit inquiries.</li>
<li>Impact: Opening too many accounts in a short period or having too many hard inquiries can lower the score.</li>
<li>Relevance: Too much new credit may indicate financial stress or overextension.</li>
</ul>

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arush

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18 ม.ค. 2568 18:20 #1

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152.58.33.115

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