How is my credit score calculated?

Most credit scores — including the FICO Score, used by 90% of top lenders — are calculated from five factors in your credit report: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit (10%). The score ranges from 300 to 850.

A credit score is a three-digit number generated by a statistical model that reads your credit report and estimates how likely you are to repay a new debt on time. The most widely used model is the FICO Score, developed by Fair Isaac Corporation. Lenders also use VantageScore, developed jointly by the three major bureaus (Equifax, Experian, TransUnion). Both score on a 300–850 scale, but the factor weights differ slightly.

The five FICO factors and their weights

Payment history — 35%. Whether you pay on time. A single 30-day late payment can drop a 720+ score by 60–110 points. This factor also includes collections, charge-offs, and bankruptcies.
Amounts owed (credit utilization) — 30%. The percentage of your revolving credit limits you're using. Under 30% overall is the standard guideline; under 10% is where the highest scores cluster.
Length of credit history — 15%. Age of your oldest account, age of your newest account, and average age of all accounts. Longer history is more predictive.
Credit mix — 10%. Whether you've managed both revolving credit (credit cards, lines of credit) and installment credit (loans). Don't open accounts just for mix — it's a secondary signal.
New credit — 10%. How many new accounts you've opened recently and how many hard inquiries are on file. Rate-shopping multiple lenders for the same loan type within 45 days counts as one inquiry in most FICO models.

Where does the score come from?

Each of the three major credit bureaus — Equifax, Experian, and TransUnion — maintains its own credit file on you. A FICO Score is calculated separately at each bureau using that bureau's file. This is why your Equifax FICO, Experian FICO, and TransUnion FICO can differ — they're reading three slightly different files. Lenders for mortgages typically pull all three and use the middle score.

FICO Score vs. VantageScore

VantageScore 3.0 and 4.0 use the same 300–850 range and similar factor categories but weight them differently — payment history is still the dominant factor, but VantageScore places slightly more weight on total balances and available credit. Free credit score apps (Credit Karma, Experian's consumer app) typically show VantageScore. Mortgage lenders almost universally use FICO. Both are calculated from the same underlying credit report data.

What the score range means

800–850 — Exceptional. Typically qualifies for the best available rates.
740–799 — Very Good. Strong approval odds; competitive rates.
670–739 — Good. Most lenders will approve; rates are near-market.
580–669 — Fair. Approval possible but at higher rates; FHA mortgage floor is 580.
300–579 — Poor. Most conventional lenders won't approve; secured products only.

By the numbers

FICO Scores are used in over 90% of U.S. lending decisions, per Fair Isaac Corporation. — myFICO
The CFPB defines a credit score as a number that helps lenders evaluate the risk that you will not repay a loan. — CFPB
Payment history and amounts owed together account for 65% of a FICO Score — the two factors a consumer can actively improve. — myFICO

Key takeaways

FICO Scores run 300–850; the model is built on five weighted factors from your credit report.
Payment history (35%) and amounts owed (30%) are the two factors that move the most.
Each bureau scores independently — you have three FICO scores, and they can differ.
VantageScore (shown on free apps) and FICO use the same range but different weights.
The fastest lever: pay down credit card balances to lower utilization — it resets every billing cycle.

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