What criteria is used to calculate my credit score?

A credit score is calculated based on several key criteria that reflect an individual's creditworthiness. The most common model used for calculating credit scores is FICO, which evaluates five main factors. The first factor is payment history, which accounts for approximately thirty-five percent of the score. This reflects whether an individual has made timely payments on credit accounts. The second factor is the amount owed, comprising about thirty percent of the score. This considers the total amounts owed across various accounts and the credit utilization ratio, which is the percentage of available credit being used. The third factor is the length of credit history, accounting for around fifteen percent of the score. This indicates how long credit accounts have been active. The fourth factor is new credit, which makes up about ten percent and includes recent inquiries for new credit accounts. Finally, the types of credit used, which refers to the variety of credit accounts such as credit cards, mortgages, and installment loans, accounts for the remaining ten percent. Understanding these criteria can help individuals manage their credit effectively and improve their scores over time. For specific questions regarding individual credit scores, it may be beneficial to refer to the resources available on the ScoreSense website.