1. What is a FICO Credit Score?

The FICO score is the most widely used credit scoring model in the United States. It ranges from 300 to 850 and is used by lenders to assess credit risk. Your score is calculated based on five key factors with different weightings.

2. How Is the Score Calculated?

The calculator uses the standard FICO weighting formula:

Where:

• Payment History (35%) - Your record of on-time payments
• Credit Utilization (30%) - Amount of credit you're using compared to your limits
• Credit Age (15%) - Length of your credit history
• New Credit/Inquiries (10%) - Recent credit applications
• Credit Mix (10%) - Variety of credit types (cards, loans, etc.)

Explanation: Each factor is scored from 0-100%, then weighted and combined to produce a score between 300-850.

3. Importance of Credit Scores

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

4. Using the Calculator

Tips: For each factor, estimate your percentage (0-100%) based on your credit profile. For example, if you've never missed a payment, you might enter 100% for Payment History.

5. Frequently Asked Questions (FAQ)

Q1: How often does my credit score update?
A: Credit scores update as new information is reported to credit bureaus, typically monthly.

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

Q3: How can I improve my credit score?
A: Pay bills on time, keep credit utilization below 30%, avoid opening too many new accounts, and maintain a mix of credit types.

Q4: Why is payment history weighted so heavily?
A: Your track record of repaying debts is the strongest predictor of future credit behavior.

Q5: Do all lenders use FICO scores?
A: While FICO is most common, some lenders use VantageScore or proprietary models. Different FICO versions also exist for different loan types.