Solve Debts, a leading debt settlement company located in San Francisco, California, has published the top 5 factors that affect a consumer’s FICO score. Due to the difficult economic and credit market environments, Solve Debts is seeking to educate consumers about their scores and what can be done to improve them.

“Lending standards have tightened considerably in the past 12 months,” said Andy Creager, director of Solve Debts, California.

“It’s important for consumers to know how much credit scores are determined so they can be proactive in maintain or restoring them,” he added.

Solve Debts list includes:

Payment History: One of the most important factors in a credit score is whether or not bills are paid on time. Payments 30 days past due are typically reported to all three bureaus and will negatively impact a score.

Revolving Debt Balances: Another important factor is the amount owed on revolving debt. Balances at or near credit limits will have a negative impact on one’s credit score. “If at all possible, we recommend keeping balances below 40% of the total credit limit, “said Creager, “Anything over 50% will start to negatively affect a score.”

Length of Credit History: Consumers with new or recent credit profiles will be affected. This is one factor that is out of the control of consumers and Creager noted that maintaining a satisfactory credit history over a prolonged period of time is the only solution to improving this scoring component.

Types of Credit In Use: Excessive revolving debt (credit cards or other unsecured lines of credit) will typically have a negative impact on one’s score. Creager recommends no more than two open revolving debts accounts at a time.

Inquiries: Although a minor component to the overall score, excessive “hard inquiries” on your credit profile will begin to drag down a score.

About Solve Debts, California
Located in San Francisco, California, Solve Debts is a member of The Association of Settlement Companies (TASC) and offers solutions and programs to Americans looking to get out of debt. With it’s main offices California, Solve Debts uses a mulit-facted approach to assist clients to become free from credit card companies and other unsecured debtors in a relatively short period of time. For more information, visit http://www.solvedebts.com or call 1-800-390-2805.