FICO score – a mathematical model that assesses



FICO score – a mathematical model that assesses a person’s reliability in repaying borrowed funds

Visual 4.3.1 - Credit Score Categories

Payment History 35%

Amounts Owed 30%

Length of Credit History 15%

New Credit 10%

Types of Credit Used 10%

“What’s In a Score” Answers

Payments History

• Account payment information on

specific types of accounts: cards, retail,

installment, mortgages, finance companies

• Presence of adverse public records:

liens, suits, bankruptcies, wage

attachments, collection items, past due

items

• How severe is a payment delinquency

(past due for how long)?

• Amount past due on delinquent

accounts or collection items

• How recent were past-due items?

• Number of past-due items on file

• Number of accounts paid as agreed

Amounts Owed

• Amount owed on accounts

• Lack of a specific type of balance

• Number of accounts with balances

• Proportion of credit lines used

(revolving)

Length of Credit History

• Time since accounts opened

• Time since account was actively used

New Credit

• Number of recently opened accounts,

and proportion of accounts that are recently

opened by type of account

• Time since credit inquiries

• Re-establishment of positive credit

history following past payment problem’

Types of Credit Used

• Number of various types of accounts

“What’s Not In a Score” Answers

• Race, color, religion, national origin,

sex and marital status

• Your age

• Your salary, occupation, title, date

employed or employment history

• Where you live

• Any interest rate being charged on

any account

• Any items reported as child/family

support or rental obligations

• Certain types of inquiries (questions

about your credit)

• Any information not in your credit

report

• Any information that is not proven

to be predictive of future credit

performance

• Whether or not you are participating

in credit counseling of any kind

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