Connected Credit Union FacebookConnected Credit Union InstagramYouTubeBlog
Make a payment from an external account using a debit card, credit card or ACH. (an external account is a non-Connected Credit Union account)

One Time Payment

Returning User

Connected CU
Connected CU
Keeping you informed

Blogging with Kerri

Keeping you informed

Home > Learn about your Fico Credit Score

YOUR FICO SCORE AND YOU

10/1/2020

What is a FICO® Credit Score & How is it Calculated?

A FICO® score is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit. Here is how a FICO score is calculated:

35%  Payment History: The first thing any lender wants to know is whether you’ve paid past credit accounts on time.

30% Amounts Owed: When a high percentage of a person’s available credit has been used, this can indicate that a person is overextended, and is more likely to miss or make late payments.

15%  Length of Credit History: In general, a longer credit history will increase your score.

10% Credit Mix In Use: FICO Scores will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

10% New Credit: Research shows that opening several credit accounts in a short period of time represents a greater risk – especially for people who don’t have a long credit history.



« Return to "Blog"