How Your Credit Score Is Derived

Developed in 1956, a Fair Isaac Corporation Score (commonly called the FICO Score) is a three digit number ranging from 300-850 and is calculated according to the following risk factors:

Payment History (35% of score)
  • Payment information on many types of accounts
  • Public record and collection items
  • Details on late or missed payments – specifically:
    • how late they were
    • how much was owed
    • how recently they occurred
    • how many there are
Amounts Owed (30% of score)
  • Amount owed on all accounts
  • Amount owed on different types of accounts
  • Whether you are showing a balance on certain types of accounts
  • How much of the total credit line is being used
  • How much of installment loan accounts is still owed
Length of Credit History (15% of score)
  • How long your credit accounts have been established, in general
  • How long specific credit accounts have been established
  • How long it has been since you used certain accounts
New Credit & Inquiries (10% of score)
  • What kinds of credit accounts you have and how many of each
  • Total number of accounts you have
Types of Credit (10% of score)
  • How many new accounts you have
  • How long it has been since you opened a new account
  • How many recent requests for credit you have made
What It Means

Once the borrower’s score is derived, most lenders use a standard ‘grading’ system to categorize the results. While some lenders develop their own systems for classification of scores, below is a general guide of score interpretation. Used as a general reference, this can help you interpret the credit score you’ve been given based on a grading system typically used in schools:

670 and above 
520 or below 
A+ to A 
B+ to B- 
C+ to C- 
D+ to D- 


Fair Isaac Resolution Resources Helpline (800) 777-2066

Things To Consider Before Buying A Home

Documents Needed for Loan Applications

Dos & Don'ts

How Your Credit Score Is Derived

Keep Your Credit Clean

What To Expect At Closing

Moving Checklist


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