How is my FICO score calculated?

A FICO score is calculated using a specific formula that considers several key factors in your credit history. The primary components that influence the score include payment history, credit utilization, length of credit history, types of credit used, and new credit. Payment history is the most significant factor, accounting for about thirty five percent of the score. This aspect examines whether you have paid your bills on time, any missed payments, and the duration of any delinquencies. Credit utilization, which makes up around thirty percent of the score, looks at the amount of credit you are using compared to your total available credit. Generally, lower utilization rates are seen more favorably. Length of credit history encompasses the age of your oldest account, the average age of all your accounts, and the recency of account openings, comprising about fifteen percent of the score. The types of credit used, which include various forms such as installment loans and credit cards, contribute to about ten percent of the score as well. Lastly, new credit, which accounts for approximately ten percent, takes into consideration the number of recently opened accounts and recent inquiries into your credit report. For a deeper understanding, it may be beneficial to visit the official FICO website to explore additional resources.