A credit score is a number arrived at based on a number of financial factors. As detailed in the credit score chart below, payment history, amounts owed, length of credit history, types of credit and new credit all make up a portion of your FICO score. There are three companies (Experian, TransUnion and Equifax) that report this score, all delivering a slightly different number. The scores vary because all three companies maintain financial data separately. It is generally a good idea to monitor your credit score from each company once a year. This gives you the best look at your financial picture and helps you monitor any problems with your report.
Credit Score Rating Scale |
35%
Payment History |
30%
Amounts Owed |
15%
Credit History |
10%
Credit Types |
10%
New Credit |
| Number of accounts paid as agreed |
How much owed and type of accounts |
Time tracked by credit report |
Total number of accounts and types |
New accounts and new-to-existing ratio |
| Negative public records and/or collections |
Use of revolving credit lines |
Length since accounts opened |
Mixture usually gives better score |
Recent credit inquiries |
| Number of zero balance accounts |
Longer good history equals better score |
Time passed since last activity |
|
Good recent history after past problems |
| Delinquent accounts |
Amount on installment accounts vs. original balance |
|
|
Time passed since new accounts and inquiries |
For the most part, any credit score rating scale you find will break down similiar to this one, though the exact formula that is used may slightly differ.
Of course, there is a lot more that goes into understanding your score than just reading this credit score chart and we recommend you read some of our other articles to gain a better understanding of the entire credit picture.
