1 type (e.g. only Credit Card)
2 types (e.g. Credit Card + Student Loan)
3+ types (Credit Card, Auto, Mortgage)
GOOD
720
How Is a Credit Score Calculated?
A credit score is a three-digit number, typically ranging from 300 to 850, that represents your creditworthiness. Financial institutions use this score to determine the likelihood that you will repay a debt. While there are various models like FICO and VantageScore, most follow a similar weighting system based on your credit report data.
The Five Pillars of Your Score
To understand how the calculation works, you must look at the five primary factors used by FICO, which is the most widely used model:
Payment History (35%): This is the most significant factor. Even one late payment (30+ days overdue) can significantly damage your score. Consistency over years is key here.
Amounts Owed (30%): Also known as credit utilization. This is calculated by dividing your total credit card balances by your total credit limits. Staying below 30% is standard advice, but those with the highest scores often stay below 10%.
Length of Credit History (15%): This considers the age of your oldest account, your newest account, and the average age of all accounts. A longer history provides more data for lenders.
Credit Mix (10%): Lenders like to see that you can manage different types of credit, such as "revolving" (credit cards) and "installment" (auto loans, mortgages, or personal loans).
New Credit (10%): Opening several new credit accounts in a short period represents a higher risk. This includes "hard inquiries" which occur when you apply for credit.
Utilization: $2,000 balance on a $10,000 limit (20% utilization). (Strong points earned)
History: 10 years average age. (High points earned)
Mix: Alex has a credit card and a car loan. (Moderate points earned)
New Credit: 0 inquiries in the last year. (Maximum points earned)
Alex would likely have a score in the "Very Good" to "Exceptional" range (760-800+).
Common Myths About Credit Score Calculations
Many believe that carrying a balance on a credit card and paying interest helps your score. This is false. You can pay your statement in full every month to avoid interest while still building a perfect payment history. Another myth is that checking your own score lowers it. Checking your own score is a "soft inquiry" and has zero impact on the calculation.
function calculateCreditScore() {
var payHist = parseFloat(document.getElementById('paymentHistory').value);
var util = parseFloat(document.getElementById('utilization').value);
var age = parseFloat(document.getElementById('historyAge').value);
var mix = parseFloat(document.getElementById('creditMix').value);
var inq = parseFloat(document.getElementById('newInquiries').value);
// Validation
if (isNaN(payHist) || isNaN(util) || isNaN(age) || isNaN(inq)) {
alert("Please enter valid numbers in all fields.");
return;
}
// Base score is 300, Range is 550 points (300 to 850)
var base = 300;
var totalRange = 550;
// 1. Payment History (35% = 192.5 points)
var payPoints = 0;
if (payHist >= 100) payPoints = 192.5;
else if (payHist >= 98) payPoints = 150;
else if (payHist >= 95) payPoints = 100;
else if (payHist >= 90) payPoints = 50;
else payPoints = 0;
// 2. Amounts Owed / Utilization (30% = 165 points)
var utilPoints = 0;
if (util <= 10) utilPoints = 165;
else if (util <= 30) utilPoints = 130;
else if (util <= 50) utilPoints = 80;
else if (util = 10) agePoints = 82.5;
else if (age >= 7) agePoints = 65;
else if (age >= 5) agePoints = 45;
else if (age >= 2) agePoints = 25;
else agePoints = 10;
// 4. Credit Mix (10% = 55 points)
var mixPoints = 0;
if (mix == 3) mixPoints = 55;
else if (mix == 2) mixPoints = 35;
else mixPoints = 15;
// 5. New Credit (10% = 55 points)
var inqPoints = 0;
if (inq == 0) inqPoints = 55;
else if (inq == 1) inqPoints = 40;
else if (inq == 2) inqPoints = 20;
else inqPoints = 0;
var estimatedScore = Math.round(base + payPoints + utilPoints + agePoints + mixPoints + inqPoints);
// Caps
if (estimatedScore > 850) estimatedScore = 850;
if (estimatedScore = 800) {
rating = "EXCEPTIONAL";
color = "#4caf50";
} else if (estimatedScore >= 740) {
rating = "VERY GOOD";
color = "#8bc34a";
} else if (estimatedScore >= 670) {
rating = "GOOD";
color = "#ffeb3b";
} else if (estimatedScore >= 580) {
rating = "FAIR";
color = "#ff9800";
}
ratingElem.innerHTML = rating;
ratingElem.style.color = (color === "#ffeb3b") ? "#d4af37" : color;
gauge.style.backgroundColor = color;
// Calculate percentage for gauge (300 to 850)
var percentage = ((estimatedScore – 300) / 550) * 100;
gauge.style.width = percentage + "%";
breakdown.innerHTML = "Estimated Weighting Contribution:" +
"• Payment History: " + Math.round(payPoints) + " pts" +
"• Utilization: " + Math.round(utilPoints) + " pts" +
"• History Length: " + Math.round(agePoints) + " pts" +
"• Credit Mix: " + Math.round(mixPoints) + " pts" +
"• New Credit: " + Math.round(inqPoints) + " pts";
}