• Your payment history
• Amount owed
• Credit history
• Amount of New Credit
• Types of credit

Simply put there is a chicken and egg game going on. You cant get credit without getting into a debt situation. When it comes to making a large purchase and using good credit such as a house or car, your FICO score plays a big roll in what rates you get, the terms, etc…

However there is something odd about this, FICO does not account for anything you do with cash. If you are someone who is careful with your money, manage your finances, even have savings (big or small) non of it impacts your FICO score.

If you decided to live a financially responsible life style and decided to pay cash for things you buy, or if you decided to save money and have good money saving plan, that unfortunatley does not get included in your FICO computation
Is that fair? what do you think? do you think cash payments and savings should be included in your FICO score computation?

Read more about your credit rating and how you can get credit healthy.