How Your FICO Credit Score Gets Calculated [Infographic]

What Is a Credit Score?

In today’s society, your credit score can impact every aspect of your life. Companies check your credit before giving you a job. Leasing agencies and real estate companies will check your credit to determine if you are allowed to move in. You need credit to be approved for personal loans, car loans, and home loans.

In reality, your credit score is one of the biggest influencers on how you interact with the majority of standard parts of living. This powerful number can determine how people interact with us, but few people truly understand what it is. In this article, we will breakdown what a credit score really is and how you can improve yours.

Defining Credit Score. The FICO Score is a credit score assigned to every single person who has ever had a line of credit in one way or another. If you have ever financed anything or borrowed money, you will have a credit score that will change over time. The credit score is a rating that is designed to demonstrate to financial companies how effective you are at reliably paying back the money. This will help lenders, as well as businesses, to determine if it is a good idea to work with you or not.

FICO Credit Score Infographic

What Can Impact My Credit Score. Your FICO credit score is composed of a variety of different elements that are used to determine an overall rating for your lending liability.

Your amount of new credit and your overall credit mix both account for 10% of your credit score each. New credit is a rating that changes when you open a lot of accounts in short succession, and your credit mix includes the kind of variety that you have in your credit history.

Fifteen percent (15%) of your credit score is based on the length of your credit history. A longer history means a higher score.

Thirty percent (30%) of your FICO rating comes from the percentage of available credit that you are using. It isn’t necessarily bad to have credit available to you unless you have a high amount of debt on each line.

Finally, thirty-five (35%) of your score comes from payment history. If you pay on time, your score will be fine. If you have late or delinquent payments, it will impact your score.

How to Improve a Credit Score. The best way to improve your credit score is to appeal to the different categories. Avoid opening too many accounts too quickly, always pay your debts on time, avoid high-revolving balances on your credit lines, and try to keep your oldest credit lines active. This will help you to improve your credit score as more time passes.


The credit score is an old rating that still proves to be helpful in today’s society. Though many people find themselves inevitably taking a hit to their credit, don’t worry. A single hit to your credit isn’t going to ruin your credit score, and even if your score does drop, you can always rebuild. Make wise choices with your money when possible so that you can benefit from a high credit score!