1. What is a Credit Score?

A credit score is a numerical representation of a person's creditworthiness, based on their credit history. The most common models are FICO and VantageScore, ranging from 300 to 850. Higher scores indicate better credit health.

2. How Does the Calculator Work?

The calculator uses the standard FICO score weighting formula:

Where each factor is scaled to the 300-850 range:

• Payment History (35%) - Record of on-time payments
• Amounts Owed (30%) - Credit utilization ratio
• Credit History Length (15%) - Age of credit accounts
• Credit Mix (10%) - Variety of credit types
• New Credit (10%) - Recent credit inquiries and accounts

3. Importance of Credit Scores

Details: Credit scores determine loan approvals, interest rates, rental applications, and sometimes employment opportunities. Maintaining a good score (670+) saves money through better terms.

4. Using the Calculator

Tips: Enter percentages (0-100) for each factor based on your credit profile. 100% represents perfect performance in that category. The calculator estimates your score based on standard weightings.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good credit score?
A: 670-739 is good, 740-799 is very good, and 800+ is exceptional. Below 580 is poor.

Q2: How often should I check my credit score?
A: At least annually, or before major financial decisions. Many services offer free monthly checks.

Q3: How long does negative information stay?
A: Late payments: 7 years. Bankruptcies: 7-10 years. Hard inquiries: 2 years.

Q4: Does checking my score lower it?
A: Soft inquiries (personal checks) don't affect scores. Hard inquiries (credit applications) may slightly lower it.

Q5: How can I improve my score quickly?
A: Pay down balances (especially above 30% utilization), avoid new credit applications, and ensure on-time payments.