35% – Payment History
30% – Amounts Owed
15% – Length of Credit History
10% – New Credit
10% – Types of Credit
Payment History – This is the most important category, it gives the overall picture of how well a person handled loans, credit cards and other types of accounts in the past. Are the payments made on time versus payments that are delinquent. Time does play an important factor. If you have a history of past due amounts, the amount of time should play an important role in how a FICO score will be affected in addition to the number of occurrences. On the other hand, good payments on your past accounts and the number of accounts that were paid on time will be reflected positively on a person’s credit score.
Amounts Owed – This portion consists of how much you owe, or have a balance on, what types of accounts the amounts owed are a part of as well as the capacity of unused credit a person currently has available to them. Each type of account is weighted according to the type of loan per se a retail store account versus a mortgage. This is all taken into consideration when calculating your score. The amounts owed on card balances and other accounts or loans are totaled and expressed a s a ratio of what you currently owe versus what your currently have avaialbe to you.
Length of Credit History – This portion looks at the length of your overall credit history. It is calculated by gathering up data on all previous and current accounts and analyzing how long you have had the accounts as well as the time of your most recent activity on the accounts. Also taken into consideration is the types of accounts that you have been using or have not been making payments on, such as mortgage versus payments on new purchases on your credit card.
New Credit – This section reviews the number of new credit inquiries or new credit that has been obtained and/or applied for, such as new credit cards, car loans, mortgages, etc., as well as any repaired credit or re-established credit for those who have made an improvement on their credit score after their credit score had dropped due to past delinquent account activity.
Types of Credit – The types of credit has a lot to do with how much of an influence it will have on the actual credit score. Credit cards or other revolving debt, installment loans, consumer financing and mortgages are all considered when observing the types of credit a borrower has established and/or is currently making payments on.
Even with the breakdown of categories and the percentages each category bears on your FICO score, it is nearly impossible to figure out on your own. You can obtain a free credit report online and for an additional fee, you can obtain your FICO score at several sites.