We have always know that even some simple mistakes can damage a credit score, but we have been kept in the dark as to the actual impact.

Until now.

FICO released a chart showing a range of damage that can be done to your score for some minor and not-so-minor problems. Here it is…

FICO damage scoring model

While we still do not have access to the actual scoring model, this gives us an idea of how much damage we can inflict upon ourselves.

One thing to note is that “maxed-out” on a credit card could be as low as 80% utilization, or an $800 balance on a $1,000 limit card. The good news is that by paying these balances down to under about 18%, you can gain those points back and more!

If you need information about improving your credit, you can contact me at scott@nwiloanguy.com.

Scott

Your Indiana mortgage expert specializing in FHA, VA, and USDA Rural Development loans.