When it comes to finances, the FICO score of a person is the deciding factor in most cases. Poor credit is a problem that used to plague large sections of the American population even until a few years ago.

Although bad credit will never really go away, over the last few years, consumers have made conscious efforts to improve credit score.

This is mainly because the credit history of a person is considered in several places and not all of them are loans.

Other critical reasons

In some States, your credit score will be considered even if you apply for a job or rent a house. Even if you do not plan to take a loan in the near future, there are several other reasons why your FICO score is crucial.

However, despite the best credit repair efforts, consumers might be surprised that their credit score is never static. Even after you paid your bills and fixed your credit, your FICO score may fluctuate very often.

There is more than one reason why this could happen, and it doesn’t mean you haven’t paid off your debts. A high credit score will not always remain high; it will keep changing. Small factors are often responsible for this change.

Critical components

Your FICO score is made up of several components, including your credit history, how old your accounts are, your credit utilization ratio, etc. Your debts make up only 35 percent of your credit score. Even if you have your bills paid in full on time, your FICO score could change because of the remaining 65 percent.

For instance, if you have a credit limit of $5,000 on your credit card and you have already spent $4,000 out of it, you have a poor credit utilization ratio.

The higher the ration, the lower your score. If you owe $100 on a $5,000 credit limit, it makes your situation excellent. Another factor that decides your FICO score is the age of your accounts. If you have old accounts, then you make a good impression.

If you have recently opened several new accounts at once, it negatively impacts your credit score.

How a credit repair agency can help

Credit repair services make it easy for consumers to increase credit score.  EZ Credit Repair Now has been providing consumers with alternatives to a legal recourse for fixing credit. Simply get in touch with EZ Credit Repair Now, and let them handle all the tedious credit repair work for you.