1. What is a FICO Credit Score?

The FICO score is the most widely used credit score in the United States, ranging from 300 to 850. It's calculated based on five key factors that reflect your creditworthiness to lenders.

2. How is Credit Score Calculated?

The calculator uses the standard FICO score weighting formula:

Where:

• Payment History (35%) - Record of on-time payments
• Credit Utilization (30%) - Amount of credit used vs available
• Length of Credit History (15%) - Age of your credit accounts
• New Credit (10%) - Recent credit inquiries and accounts
• Credit Mix (10%) - Variety of credit types (cards, loans, etc.)

Explanation: Each factor is scored individually (0-100) then combined using the weighted formula and scaled to the 300-850 range.

3. Importance of Credit Score

Details: Your credit score affects loan approvals, interest rates, credit limits, rental applications, and sometimes employment opportunities. Higher scores mean better terms.

4. Using the Calculator

Tips: Estimate each component's percentage (0-100) based on your credit profile. The calculator will combine them using standard FICO weights.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good credit score?
A: Generally: 670-739 (Good), 740-799 (Very Good), 800+ (Excellent). Below 580 is Poor.

Q2: How often should I check my credit score?
A: At least annually. Many credit cards now provide free monthly FICO scores.

Q3: Does checking my score lower it?
A: No, checking your own score is a "soft inquiry" that doesn't affect it.

Q4: How long do negative items stay on my report?
A: Most negative items remain for 7 years, bankruptcies for 7-10 years.

Q5: What's the fastest way to improve my score?
A: Pay all bills on time, reduce credit card balances below 30% of limits, and avoid opening several new accounts at once.