How is a FICO Score Calculated?

FICO score

FICO scores are calculated by combining the following from your credit history

  • 35% payment history
  • 30% amounts owed currently
  • 15% how old your oldest form of credit is
  • 10% the diversity of debt you owe
  • 10% how new your newest form of credit is

​FICO states that “Your FICO Scores consider both positive and negative information in your credit report. Late payments will lower your FICO Scores, but establishing or re-establishing a good track record of making payments on time will raise your score.”

Credit Scores range usually range from 300-800. While different lenders use different ranges for credit qualification, a score that is above 700 is typically considered good and will qualify individuals and scores below 580 are typically considered bad.

FICO has created the video below to help explain further how they calculate your score.