Although all of the credit bureaus calculate their scores slightly differently, there are five factors that affect your FICO credit score, according to MyFICO (the official consumer division of FICO):

  1. Payment history (approximately 35%)

  2. Amounts owed (approximately 30%)

  3. Length of credit history (approximately 15%)

  4. Credit mix (approximately 10%)

  5. New Credit (approximately 10%)

For more information about the factors that can affect your credit score, see this article from MyFICO.

Your FICO credit score, created by the Fair Isaac Corporation, is an indicator used by lenders to make decisions about whether or not they will offer you lines of credit. Your credit score is taken into consideration when you apply for a mortgage, a car loan, or a credit card. Sometimes, credit scores are even considered during job or rental applications.

Below are the ranges of credit scores and what they mean according to one of the largest credit bureaus in the world, Experian:

  1. 300-579 (Very Poor)

  2. 580-669 (Fair)

  3. 670-739 (Good)

  4. 740-799 (Very Good)

  5. 800-850 (Exceptional)

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