1. What is a Credit Score?

A credit score is a numerical representation of a person's creditworthiness, based on their credit history. Lenders use credit scores to evaluate the probability that a borrower will repay loans in a timely manner.

2. How Does the Calculator Work?

The calculator uses a weighted formula based on standard credit scoring factors:

Where:

• Payment History (35%): Your track record of making payments on time
• Amounts Owed (30%): How much you owe compared to your available credit
• Credit History Length (15%): How long you've had credit accounts
• Credit Mix (10%): The variety of credit types you have
• New Credit (10%): Recent credit inquiries and new accounts

Explanation: The score is scaled to the standard 300-850 range used by most credit bureaus.

3. Importance of Credit Score

Details: Your credit score affects your ability to get loans, the interest rates you'll pay, and can even impact rental applications and employment opportunities.

4. Using the Calculator

Tips: For each factor, enter a percentage (0-100) representing how strong you believe that aspect of your credit is. 100% represents perfect credit in that category.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: This provides an estimate based on standard weighting factors. Actual credit scores may vary based on specific bureau calculations.

Q2: What is considered a good credit score?
A: Generally: 670-739 = Good, 740-799 = Very Good, 800+ = Excellent.

Q3: How often should I check my credit score?
A: It's recommended to check at least annually, and before applying for major loans.

Q4: How can I improve my credit score?
A: Pay bills on time, keep credit utilization low, avoid opening too many new accounts, and maintain a mix of credit types.

Q5: Why do different bureaus show different scores?
A: Each bureau may have slightly different information and may use different scoring models.