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How is your credit score determined?

In: Auto Loans and Financing, Credit Reports, Credit [Edit categories]

Answer:

The credit bureaus and financial institutions don't generally publish the exact algorithms that they use to come to a final credit score.
All providers use the following components in determining a credit score:

* Historical number of late payments, if any
* How late were late payments (30/60/90/120/150/180 days), if any
* Number of current and historical revolving credit accounts
* Credit limits of open revolving credit accounts
* Balances of current and historical open revolving credit accounts
* Ratio of balances to credit limits of revolving credit accounts
* Balances of installment credit accounts
* Number and type of installment credit accounts
* Number of bankruptcies associated with borrower, if any
* Number of judgments against borrower, if any
* Number of written-off debts, if any
* Size of written-off debt, if any
* Number of accounts in collection, if any

Some providers (non-credit bureaus) add the following components to their calculations:

* Amount of time in current and previous jobs
* Amount of time in current and previous homes/residences
* Income at current and previous jobs
* Debt to income ratio
* Potential debt to income ratio
* Criminal history, if any

First answer by Madbuns. Last edit by Madbuns. Contributor trust: 217 [recommend contributor ]. Question popularity: 0 [recommend question].

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