How is my credit score calculated?

Home Forums Credit Reports & Scores How is my credit score calculated?

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    Geoff Massanek
    Moderator
    #8759
    Team StellarFi
    Keymaster

    Your credit score is calculated based on different factors such as credit history, utilization, and more. You may have multiple credit scores and they may not be the same depending on the scoring model, the credit bureau that has reported the numbers, and more. The two main scoring models used by most lenders are FICO® and VantageScore®. Both of them calculate your credit score on a scale of 300-850, but their individual categories vary slightly. Here is a comparison of both scoring factors

    FICO weighs its factors by percentage while VantageScore weighs its factors based on how influential they are likely to be.

    These are the different factors FICO looks at to calculate your score:
    Payment history: 35%
    Amounts owed: 30%
    Length of credit history: 15%
    Credit mix: 10%
    New credit: 10%

    These are the different factors VantageScore looks at to calculate your score:
    Total credit usage, balance, and available credit: Extremely influential
    Credit mix and experience: Highly influential
    Payment history: Moderately influential
    Age of credit history: Less influential
    New accounts opened: Less influential

    Neither FICO nor VantageScore considers your age, gender, religion, location, marital status, salary, or soft inquiries to determine your credit scores. But lenders may look at your salaries to determine your credit or loan approval.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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