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

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

How to carry a temporary credit card balance - While it's best to pay off your credit card balance in full every month, you won't wreck your credit score by carrying a temporary balance -- as long as you do it responsibly

4 times it's not safe to cancel a credit card - If a credit card has lost its luster, canceling the account might seem like a reasonable next step. In these four circumstances, however, it could also lead to a lower credit score

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.

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