So Just What’s in your FICO® Score?

FICO scores are derived from several data points in one’s credit report. The information can be segmented into 5 main categories including:

-       Payment history 35%

-       Amounts owed 30%

-       New credit 10%

-       Types of credit 10%

-       Length of credit history 15%

Beside the data point is the approximate weighting in calculating the overall FICO credit score.

FICO Score Contributing Factors

Keep in mind that these percentages do not apply to the entire population uniformly, certain demographics or personal situations might see more emphasis placed on payment history instead of length of credit history, or the types of credit outstanding vs. amounts owed, etc.

Here are more details regarding the above credit report scoring categories.

Payment History

-       Payment information on specific types of credit accounts such as credit cards, mortgages, other financial business accounts or installment debt.

-       Bankruptcy, liens, wage attachments, collections or other past due liabilities

-       The length of the delinquency, or how long the debt has been outstanding beyond its due date.

-       Absolute amount past due, among other collection liabilities.

-       Total number of accounts paid properly

-       Total number of past due accounts

Amounts Owed

-       Amounts owed on financial accounts

-       Amounts owed on specific accounts

-       Some lacking in a desired balance in certain types of accounts

-       Absolute number of accounts with positive balances.

-       % of your credit line actually used up (moment in time snapshot)

-       % of any installment loans which are still outstanding.

Credit History Length

-       Time period of accounts (since opened)

-       Time period of accounts opened by exact account type

-       Length of time since any account activity.

New Credit

-       Time since last credit account opening

-       # of recent credit inquiries

-       Length of time since the last credit inquiry took place.

-       How long positive credit has been maintained since most recent problem or credit delinquency.

Types of Credit Used

-       Number of different types of accounts open, such as mortgages, credit cards, retail charge cards, finance accounts, other installment loans or personal/trade credit)

Be aware that your FICO score accounts for all the categories presented. It’s impossible to determine what your credit score is without knowing all of this information. The impact of any given factor depends on your credit report as a whole. Many variables go into the complex score calculation and without having access to all your information, no one can accurately predict what your score will be. In fact, only Fair Isaac and Company can calculate your FICO score because it’s their scoring algorithm!

Lastly, since the FICO score is only concerned with information contained within your credit report, be aware that lenders consider a variety of factors in conjunction with your credit score/report. Income isn’t even included in your credit score but it’s certainly of importance for lenders. Job stability and duration along with other lifestyle attributes may affect your perceived credit worthiness as well.