I mean. I know I have to keep the balance of my credit limit at half. I know how to maintain my credit, but how do they determine the credit score? Is it based on points depending on the accounts, balances, tradelines opened or closed? How? Is there factor or a math equation??
2007-05-04 08:06:22 · 4 answers · asked by S L 1 in Business & Finance ➔ Credit
"Due to the proprietary nature of the FICO score, the Fair Isaac company does not reveal the exact formula it uses to compute this number. However, what is known is that the calculation is broken into five major categories with varying levels of importance. These categories, with weight in brackets, are payment history (35%), amount owed (30%), length of credit history (15%), new credit (10%) and type of credit used (10%). All of these categories are taken into account in your overall score - no one area or incident determines your score. "
Check for further information here:
http://www.investopedia.com/ask/answers/05/creditscorecalculation.asp
2007-05-04 08:10:04 · answer #1 · answered by Yahzmin ♥♥ 4ever 7 · 0⤊ 0⤋
If you go to http://www.myfico.com and look through their education pages you will find out "generally" how the compile your score.
2007-05-04 09:53:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yahzmin said it as well as I could have.
2007-05-04 08:16:59 · answer #3 · answered by ? 7 · 0⤊ 0⤋
it is their secret
2007-05-04 08:10:11 · answer #4 · answered by skcs11 7 · 0⤊ 1⤋