How Are Credit Scores Calculated

FICO Credit Score Estimator

Never Late / All On-time 1-2 Late Payments (30 days) Recent Late Payment (60+ days) or Collections

Total balance divided by total credit limits

% of credit being used

Years since first account opened

Diverse (Cards, Auto, Personal, or Mortgage) Single Type (Only Credit Cards or Only Loans)

Hard inquiries in the last 12 months

Estimated Score: 720

How are Credit Scores Calculated?

Understanding the math behind your credit score is the first step toward financial health. Most lenders use the FICO model, which aggregates data from three major credit bureaus (Equifax, Experian, and TransUnion) to determine your creditworthiness. Scores typically range from 300 to 850.

The Five Core Factors

Your credit score is not a random number; it is a weighted average based on five specific categories:

• Payment History (35%): This is the single most important factor. It records whether you pay your bills on time. Even one late payment (30+ days) can significantly drop your score.
• Amounts Owed (30%): Also known as "Credit Utilization." This looks at how much of your available credit you are using. To maintain a high score, experts recommend keeping utilization below 30%, though below 10% is ideal.
• Length of Credit History (15%): A longer credit history is generally better. This calculates the average age of all your accounts and the age of your oldest account.
• Credit Mix (10%): Lenders like to see that you can handle different types of credit, such as "revolving" (credit cards) and "installment" (auto loans, student loans, or mortgages).
• New Credit (10%): Opening too many accounts in a short period creates "hard inquiries," which signal to lenders that you might be in financial trouble.

Realistic Example of Score Impact

Consider two individuals: Person A has a 750 score. They have 10 years of history and 5% utilization. If they miss one mortgage payment, their score could drop by 60 to 100 points because payment history is the most heavily weighted factor. Conversely, Person B has a 620 score with 90% utilization. By paying down their balances to 10%, they might see their score jump by 40-70 points in just one or two billing cycles because "Amounts Owed" has such a large impact.

Credit Score Ranges

Range	Rating
800 – 850	Exceptional
740 – 799	Very Good
670 – 739	Good (U.S. Average)
580 – 669	Fair
300 – 579	Poor

function calculateCreditScore() { var baseScore = 300; var maxAdditionalPoints = 550; // 850 – 300 // Input values var paymentHistory = document.getElementById('paymentHistory').value; var utilization = parseFloat(document.getElementById('utilization').value); var historyLength = parseFloat(document.getElementById('historyLength').value); var creditMix = document.getElementById('creditMix').value; var inquiries = parseFloat(document.getElementById('inquiries').value); // Validation if (isNaN(utilization) || isNaN(historyLength) || isNaN(inquiries)) { alert("Please enter valid numbers for utilization, history, and inquiries."); return; } var points = 0; // 1. Payment History (35% = 192.5 pts) if (paymentHistory === 'perfect') { points += 192.5; } else if (paymentHistory === 'minor') { points += 90; } else { points += 0; } // 2. Utilization (30% = 165 pts) if (utilization < 10) { points += 165; } else if (utilization < 30) { points += 130; } else if (utilization < 50) { points += 70; } else if (utilization = 15) { points += 82.5; } else if (historyLength >= 7) { points += 60; } else if (historyLength >= 3) { points += 35; } else { points += 15; } // 4. Credit Mix (10% = 55 pts) if (creditMix === 'diverse') { points += 55; } else { points += 25; } // 5. Inquiries (10% = 55 pts) if (inquiries === 0) { points += 55; } else if (inquiries <= 2) { points += 35; } else if (inquiries 850) finalScore = 850; if (finalScore = 800) { categoryP.innerText = "Exceptional"; categoryP.style.color = "#059669"; adviceP.innerText = "You have a top-tier score. You will qualify for the best interest rates available."; } else if (finalScore >= 740) { categoryP.innerText = "Very Good"; categoryP.style.color = "#10b981"; adviceP.innerText = "Lenders view you as a low-risk borrower. You are likely to be approved for most credit products."; } else if (finalScore >= 670) { categoryP.innerText = "Good"; categoryP.style.color = "#3b82f6"; adviceP.innerText = "Your score is around the national average. You should have little trouble getting credit."; } else if (finalScore >= 580) { categoryP.innerText = "Fair"; categoryP.style.color = "#f59e0b"; adviceP.innerText = "Your score is below average. You may face higher interest rates or limited options."; } else { categoryP.innerText = "Poor"; categoryP.style.color = "#ef4444"; adviceP.innerText = "This score indicates significant credit challenges. Focus on on-time payments and lowering debt."; } resultDiv.scrollIntoView({ behavior: 'smooth' }); }