What makes up your Credit Score?

What makes up your Credit Score? — Monday, June 6 2016
What’s in your FICO® Score

FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below.

– Payment History (35%)
– Amounts Owed (30%)
– Length of Credit History (15%)
– New Credit (10%)
– Types of Credit Used (10%)

These percentages are based on the importance of the five categories for the general population. For particular groups – for example, people who have not been using credit long – the importance of these categories may be somewhat different.

Payment History
• Account payment information on specific types
of accounts (credit cards, retail accounts,
installment loans, finance company accounts,
mortgage, etc.)

• Presence of adverse public records (bankruptcy,
judgments, suits, liens, wage attachments, etc.),
collection items, and/or delinquency (past due

• Severity of delinquency (how long past due)

• Amount past due on delinquent accounts or
collection items

• Time since (how recent) past due items
(delinquency), adverse public records (if any),
or collection items (if any)

• Number of past due items on file

• Number of accounts paid as agreed

Amounts Owed

• Amount owing on accounts

• Amount owing on specific types of accounts

• Lack of a specific type of balance, in some cases

• Number of accounts with balances

• Proportion of credit lines used (proportion of
balances to total credit limits on certain types
of revolving accounts)

• Proportion of installment loan amounts still owing
(proportion of balance to original loan amount on
certain types of installment loans)

Length of Credit History

• Time since accounts opened

• Time since accounts opened, by specific type of

• Time since account activity

New Credit

• Number of recently opened accounts, and proportion
of accounts that are recently opened, by type of

• Number of recent credit inquiries

• Time since recent account opening(s), by type of

• Time since credit inquiry(s)

• Re-establishment of positive credit history
following past payment problems

Types of Credit Used

• Number of (presence, prevalence, and recent
information on) various types of accounts
(credit cards, retail accounts, installment
loans, mortgage, consumer finance accounts, etc.)

Please note that:

• A FICO score takes into consideration all these
categories of information, not just one or two.
No one piece of information or factor alone will
determine your score.

• The importance of any factor depends on the overall
information in your credit report.

For some people, a given factor may be more
important than for someone else with a different
credit history. In addition, as the information in
your credit report changes, so does the importance
of any factor in determining your FICO score. Thus,
it’s impossible to say exactly how important any
single factor is in determining your score – even
the levels of importance shown here are for the
general population, and will be different for
different credit profiles. What’s important is the
mix of information, which varies from person to
person, and for any one person over time.

• Your FICO score only looks at information in your
credit report.

However, lenders look at many things when making a
credit decision including your income, how long you
have worked at your present job and the kind of
credit you are requesting.

• Your score considers both positive and negative
information in your credit report.

Late payments will lower your score, but
establishing or re-establishing a good track record
of making payments on time will raise your FICO
credit score.

Follow us on Facebook

Leave a Reply

Your email address will not be published. Required fields are marked *

Font Resize