How Your Credit Score Is Derived

Developed in 1956, a Fair Isaac Corporation Score (commonly called the FICO Score) is a three digit number ranging from 300-850 and is calculated according to the following risk factors:

	Payment History (35% of score) Payment information on many types of accounts Public record and collection items Details on late or missed payments – specifically: how late they were how much was owed how recently they occurred how many there are
	Amounts Owed (30% of score) Amount owed on all accounts Amount owed on different types of accounts Whether you are showing a balance on certain types of accounts How much of the total credit line is being used How much of installment loan accounts is still owed
	Length of Credit History (15% of score) How long your credit accounts have been established, in general How long specific credit accounts have been established How long it has been since you used certain accounts
	New Credit & Inquiries (10% of score) What kinds of credit accounts you have and how many of each Total number of accounts you have
	Types of Credit (10% of score) How many new accounts you have How long it has been since you opened a new account How many recent requests for credit you have made

What It Means

Once the borrower’s score is derived, most lenders use a standard ‘grading’ system to categorize the results. While some lenders develop their own systems for classification of scores, below is a general guide of score interpretation. Used as a general reference, this can help you interpret the credit score you’ve been given based on a grading system typically used in schools:

CREDIT SCORE
670 and above
650
620
580
550
520 or below

GRADE
A+ to A
A-
B+ to B-
C+ to C-
D+ to D-
E

Fair Isaac Resolution Resources Helpline (800) 777-2066