Don't worry, it's not necessary to have one of each. Learn more about length of credit history Credit mix (10%)įICO Scores will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. How long it has been since you used certain accounts.How long specific credit accounts have been established.How long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts.In general, having a longer credit history is positive for your FICO Scores, but is not required for a good credit score. Learn more about amounts owed Length of credit history (15%) However, if you are using a lot of your available credit, this may indicate that you are overextended-and banks can interpret this to mean that you are at a higher risk of defaulting. Having credit accounts and owing money on them does not necessarily mean you are a high-risk borrower with a low FICO Score. Learn more about payment history Amounts owed (30%) This is the most important factor in a FICO Score. This helps a lender figure out the amount of risk it will take on when extending credit. The first thing any lender wants to know is whether you've paid past credit accounts on time. What categories are considered when calculating my FICO Score? Payment history (35%) However, lenders may look at many things when making a credit decision, such as your income, how long you have worked at your current job, and the kind of credit you are requesting. Your FICO Score is calculated only from the information in your credit report. Your FICO Scores only look at information in your credit report Even the levels of importance shown in the FICO Scores chart above are for the general population and may be different for different credit profiles. Because of this, it's not possible to measure the exact impact of a single factor in how your FICO Score is calculated without looking at your entire report. Your credit report and FICO Scores evolve frequently. In addition, as the information in your credit report changes, so does the evaluation of these factors in determining your FICO Scores. For example, scores for people who have not been using credit long will be calculated differently than those with a longer credit history. They are calculated based on the five categories referenced above, but for some people, the importance of these categories can be different. Your FICO Scores are unique, just like you. The importance of credit categories varies by person The importance of these categories may vary from one person to another-we'll cover that in the next section. The percentages in the chart reflect how important each of the categories is in determining how your FICO Scores are calculated. Your FICO Scores consider both positive and negative information in your credit report.

Fico score range chart 2022