Ever wonder how the people at Fair Isaac

Company (FICO) compute credit scores?

 Here is the breakdown:

 1. Late payment history 35%

 2. Balances versus credit lines 30%

 3. Length of credit history 15%

 4. Type of credit 10%

 5. Inquiries 10%

What does this mean for you the consumer?

Pay on time...NO MATTER WHAT!

Don?t exceed 50% of the credit line (revolving credit lines).

Keep your revolving accounts open--don't keep opening new ones and closing old ones.

Stay away from finance company credit. Use banks and credit cards.

Don't apply for credit unless you have a need. They count credit inquiries for 90 days.