1. What is a Credit Score?

A credit score is a numerical representation of your creditworthiness, typically ranging from 300 to 850. It's used by lenders to evaluate the likelihood that you'll repay borrowed money. The most common models are FICO® Score and VantageScore®.

2. How Does the Calculator Work?

The calculator uses the standard credit score weighting formula:

Where:

• Payment History (35%) — Timeliness of payments
• Amounts Owed (30%) — Credit utilization ratio
• Credit History Length (15%) — Age of accounts
• Credit Mix (10%) — Variety of credit types
• New Credit (10%) — Recent credit inquiries

Explanation: Each factor is weighted according to its importance in determining creditworthiness.

3. Importance of Credit Score

Details: Your credit score affects loan approvals, interest rates, credit limits, insurance premiums, and even rental applications. Higher scores typically mean better financial opportunities.

4. Using the Calculator

Tips: For each category, estimate your percentage (0-100%) based on your credit behavior. The calculator will combine these with standard weights to estimate your score.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this estimate?
A: This provides a general estimate. Actual scores may vary based on specific scoring models and additional factors not included here.

Q2: What's considered a good credit score?
A: Generally: 670-739 (Good), 740-799 (Very Good), 800+ (Excellent). Standards vary by lender.

Q3: How often should I check my credit score?
A: At least annually, or before major financial decisions. Many services now offer free monthly updates.

Q4: How can I improve my score?
A: Pay bills on time, keep credit utilization low, maintain old accounts, limit new credit applications.

Q5: Why do I have different scores from different bureaus?
A: Lenders may report to different bureaus at different times, and scoring models may vary slightly.