What is the formula to calculate the credit score?

Question

Don't need your guessings or "I think". Real serious answers from knoledgable people are very appreciated.

Answer 1

personal_finance_101 is right, they keep it a closely guarded secret.

The best you can do is go to the link and enter your info to get your score. It will not be a true score, but if you are honest in your answers, it should be fairly close.

Answer 2

Well, you are all wrong. The formula belongs to the fair Isaac company and there are many different models for different scores. They are updated every couple of years and each industry has a slightly different model. The scores are based on everything you can think of but the most 2 important factors are:
1. Time
2. Debt to Credit Ratio

They have a scorecard system and you get points for everything. Less for some things and more for others.

I own a credit reporting agency, I have a copy of the formula somewhere. I have read it. It is like 350 pages long and will put you to sleep. Some companies are making huge money from the formula such as credit expert. It is available to Mortgage brokers and will read your credit report and spit you out custom report on what steps to take to maximize your credit report to the exact score. They also have a what if simulator. You plug in scenarios and it will tell you with exact scores the impact on your report. This is not the generic model you find on My fico which gives you a possible range of an increase.. As your broker about it.

Answer 3

Credit Score Explained
http://www.debt-loan-refinance-mortgage-credit.com/category/Credit-Score-Myths-Explained.html

Answer 4

there is not any set formulation used through all 3 credit reporting organizations. FACTA defines a “credit status” as: A numerical fee or categorization derived from a statistical device or modeling equipment used through someone who makes or arranges a private loan to foretell the prospect of particular credit behaviors, inclusive of default (and the numerical fee or the categorization derived from such diagnosis is often called a “danger predictor” or “danger score” (FCRA §609(f)(2)) it really is the reason your rankings decision between the credit reporting organizations.l desire it really is of help.

Answer 5

The credit score methodology is secret. Otherwise people would 'game' their score to drive it up.

The Wall Street Journal has done some research and discovered some interesting things. For one, closing credit card accounts that have a zero balance actually hurts your credit score. One component seems to be the portion of available credit you're actually using, lower being better.

There, no guessings (whatever the fu*k that means) or "I think". Now, a little more tact would be good from you.

Answer 6

No one knows the exact formula except the people at Fair Issacs. However, if you want to know what is included and how that is wieghted for your score, myfico.com has a good credit education section.

Answer 7

You won't get a straight answer on this because nobody here has it. The formulas that Equifax, Trans Union, and others use are all proprietary and under lock and key much like the formula for coca cola.

Answer 8

there is no such a standard formula to calculate one's credit score... better yet do inquiries on at least three credit scoring agencies and compare which one offers the best...

Answer 9

There is more than one formula.

Your credit score can actually be different on all three credit reporting agencies, though they should be similar. Each has their own way of scoring.

Answer 10

2 + 2 = your paycheck.