When applying for a loan, now more than ever, lenders are looking closely at a borrower’s FICO, or credit score. This score is based on hundreds of different inputs, taken together to assess a borrower’s credit risk. The higher the score, the greater the likelihood of qualifying for a loan, often at better terms. Understanding how a FICO works can be key to positioning yourself to qualify for a loan, so lets take a closer look at the different components of a FICO, and what you can do to maintain and improve yours.

Not surprisingly, payment history makes up the biggest component, 35% of your score. Payment history is a measure of how you have handled repayment in the past, and consequently your likelihood of default in the future. The key to improving or maintaining a high score here is simple – always make payments on time, even if an item is in dispute. Worry about the refund later.

Next up comes the amounts you currently owe, comprising 30% of your score. This measures how “maxed out” a borrower is. It is not about the dollar amount you are borrowing as much as the dollar amount relevant to the amount of credit available to you. This is where not closing out old credit cards or lowering credit limits works in your favor. Having access to credit, but not necessarily using it, is a good thing.

Third on the list, at 15%, is your length of credit history. Experienced users of credit are rated higher than new users. So if you have a credit card with history – don’t close it out. Show the lender you are used to handling credit.

Recent attempts to secure new credit comprise 10% of your score. If you have recently applied for a new credit card, for example, this is often seen as a bad sign – a borrower in search of more credit. An application for a mortgage is treated differently, and does not affect your FICO in the same way.

Lastly, also at 10% is the type of credit you carry. Mortgages and student loans, for example are considered “better” than credit and charge cards, as generally their balances can only go down, eventually to zero. Store charge cards are the worst – their interest rates tend to be higher,and suffer under the FICO model.

The City of Salida recently announced a draft master plan for the upgrade of Centennial Park, home of the Salida Hot Springs Aquatic Center. Recent improvements to the hot springs, including renovation of bathrooms, changing facilities and private soaking pools have seen an increase in patronage, and a corresponding increase in revenue for the City. A redevelopment of Centennial Park would seem to be the next, logical step in this renaissance, the end result of which will be a focal point and gateway to Salida for the benefit of both residents and visitors alike. The plan proposes, amongst other things, improved parking and access, the addition of outdoor soaking pools, upgrading and expanding playground facilities and relocation of the current recycling center.

At the other end of town, it would appear that years of negotiation and planning in conjunction with the Union Pacific Rail Road is bringing the Salida Siding Trail project closer to fruition. This plan, if completed, will see UPRR sell fourteen acres of land it currently owns on the north side of the Arkansas River to the City, enabling the City to expand its riverside trail system, provide increased picnic and angler access to the river, and solve the long standing trespass issues associated with crossing the unused tracks to access the trail system on S Mountain. The creation by Great Outdoors Colorado of the River Corridors Initiative has provided the City with the opportunity to secure funding for the project.

Both of these initiatives are part of the City’s overall Parks, Recreation, Trails and Open Space Master Plan, which seeks to maximize the opportunities for the expansion of public recreational opportunities both within the city, and surrounding areas. The time and resources invested in this plan play a significant role in understanding why Salida and its environs are recognized as a great place to live, work, and recreate.