A FICO Score is the standard credit scoring model utilized by over 90% of top US lending institutions to determine creditworthiness, loan eligibility, interest rate pricing, and borrowing limits.
The standard FICO scoring model calculates scores using five distinct data categories from the three major credit bureaus (Equifax, Experian, TransUnion): 1. Payment History (35%): On-time payment track record across credit cards, mortgages, and installment loans. 2. Amounts Owed / Credit Utilization (30%): Percentage of revolving credit limit currently in use. 3. Length of Credit History (15%): Average age of accounts, oldest account, and newest account. 4. New Credit & Inquiries (10%): Number of recent hard credit checks and newly opened tradelines. 5. Credit Mix (10%): Healthy combination of revolving accounts (credit cards) and installment loans (auto, mortgage, student).