Hi my name is Stetson Lowe, and in this clip, we're going to be talking about where you can obtain, and calculate your credit scores. The best place to obtain your credit scores obviously is through the credit bureaus directly. When you obtain your free annual credit report, at annualcreditreport.com, you can also purchase your score from each individual creditor, for $6.95. There's other agencies out there, like myfico.com, and freecreditreport.com, that also sell you your FICO scores, for an individual price as well. In calculating your credit scores yourself, or trying to come up with a good way to calculate your credit scores, we've broken it down into percentages. And the largest percentage, thirty-five percent roughly, is based on your payment history. If you have a tendency to pay your payments late all the time, or stop paying payments all together, that's going to drag your FICO scores down immensely, and it's going to be really hard to dig out of that, and increase your FICO score. So, first thing first, about thirty-five percent is based on paying your payments on time. Start right there, and, and then we're going to talk more about the other factors that, that go into calculating your credit score, or how you will know how to increase your credit score. About ten percent of your credit score is factored on the type of credit you have. You want to have a good mix of revolving trade lines, installment accounts, such as mortgages and auto loans, and that factors in to be about ten percent. An additional ten percent of the factor of your credit score, is new, new trade lines. So, people who are always opening new trade lines, and closing trade lines are going to have a harder time building the FICO score. A good rule of thumb might be to open one new trade line a year, maybe two a year if possible. Don't exceed that. And that accounts for about ten percent of your overall credit score.
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