Credit Card Guide
 
Follow Us  twitter facebook You Tube Google+
 
Credit Cards > Credit Card News > Credit Score > What Are The Components Of A FICO Score?



 
 

What Are The Components Of A FICO Score?

 
By Eva Norlyk Smith, Ph.D.
May 22, 2009
tools
tools
email print comment
tools
SHARE

Your credit score is determined by weighing the following five categories of information:

About 35% of your score is based on your payment history, where timely loan payments increase your score and missed or late payments reduce it.

About 30% of your score is based on the amounts you currently owe on all types of credit accounts. This includes not only credit cards, but also automobile loans, mortgages, personal loans, and any other type of loan you may have.

About 15% of your score is derived from the length of your credit history. This criteria looks at how long you have held any kind of credit account, how long each of your accounts has been open, and how long it has been since you have accessed particular accounts.

About 10% of your score depends on whether you are trying to get additional credit. If you have applied for new loans or credit cards recently, this will be reflected in your score.

About 10% of your score is based on the mix of the different types of credit that you have access to. This factor is less important than the others, and it is not considered necessary to have one of every type. This factor mainly becomes important when there is less information available about the other factors.


Share 
 
     

 
 

VIEW RELATED STORIES

6 ways a great credit score can improve your life - There will be lots of times in life when having a stellar credit score could mean the difference between getting what you want or having to settle for less ...

9 life events that don't affect your credit score - You know what behavior affects your credit score. But have you thought about what events don't affect it? Here are some major events that have no impact on your score ...

5 ways to make life without credit cards work - We've uncovered solutions to common problems you will face when you decide to live without credit

ALL CREDIT CARD NEWS & ADVICE ARCHIVES >>

 
     

 
  If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the ‘Post to Facebook’ box selected, your comment will be published to your Facebook profile in addition to the space below.

Our editorial content is not sponsored by any bank or credit card issuer. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.

Comments Closed

 
     


 
Secure SSL Technology
Secure SSL
Technology
 
Twitter Facebook You Tube Google+
About Us Privacy Policy Editorial Team Terms of Use
Contact Us California Privacy Rights Media Relations Site Map

Close X