How is a FICO score calculated?

[Matt Crowley]

I ran across this video this morning explaining how a FICO score is calculated. Some of the information is a bit Americanized but it is actually a very solid introduction with good quality infographics. It is put together by the St Louis Fed so these guys have enormous credibility. I hope it is useful!

https://www.stlouisfed.org/educatio...term=pf&utm_content=video&utm_campaign=8532_7

 

[Tina Myrvang]

Hello Sweet Zone,
I participated in the Rapid Cash Program on the weekend. We had Dan Heon, our Mortgage expert speak to the class. He explained exactly how they are determined here. Here is what Dan told us:

35% Payment History - Bankruptcies, late payment, past due accounts and wage attachments, collections or judgments

30% Amounts Owed - Amount owed on accounts, proportion of balance to total credit limit

15% Length of Credit History - Time since account open, time since account activity

10% New Credit - Number of recent inquires, number of recently opened accounts

10% Types of Credit - number of various types of accounts (credit cards, retail cards, mortgage, line of credit loans etc)

Hope this helps.

 

[Matt Crowley]

Thanks Tina, I was actually posting a resource here that explains just that. I've seen Dan's presentations a few times and they agree with the information in the video link I attached above.

 

[Tina Myrvang]

We are totally synced!!! Have a great day Sweet Zone!