How the FICO Credit Score is Calculated

Introduction

If you are interested in getting your credit under control, you will need information about your credit score and about how your credit score is calculated. This article is prepared to provide you specific information about how your credit score is calculated.

A Close Up Look at Credit Score Calculations

When all is said and done, your credit score, is based on your past credit history above all else. At the outset, your credit history is considered and reviewed in detail in the computation of your credit score. From this review, that all-important number ultimately is assigned.

The final score is based on how long you have had credit as well as what types of credit, your payment history and if you have had any late payments, and existing loans or credit and the status of those accounts. Although employment and wages play a big role in extending credit, these items—plus a few others—determine your credit score.

From your history, your credit score will be assigned. Potential creditors will use the report and score, wages, job history, and other financial issues to determine your credit rating and whether you can handle more credit or loans. If they determine that you can, your credit score is often used to determine your interest rate and type of credit you will get. rewrite

Where You Stand … A Look at Credit Score Statistics

In an effort to better understand your overall credit score, it is useful for you to see how your credit score matches up with the credit score of other men and women. This chart is designed to provide you an overview of such information to better aid you in coming to a complete understanding of your credit score.