9/8/2023 0 Comments Normal credit score ranges![]() ![]() Account balances and debt (moderately influential).Credit age, credit utilization, and credit mix (highly influential).Payment history (extremely influential).There are four key factors that VantageScore considers: VantageScore is a relatively young credit scoring model developed by the three major credit bureaus - Equifax, Experian and TransUnion. New credit (10 percent): Your score could be temporarily lowered if you’ve opened up several new accounts in a short time period, but the impact wanes over time as your accounts age.A mix of both revolving and installment accounts is generally better for your score than just one type of account. Credit mix (10 percent): This factor considers what types of accounts you own and manage.Length of credit history (15 percent): This simply shows how long you’ve been using credit, considering factors such as your average age of accounts and the ages of your oldest and newest accounts.A general rule of thumb is to keep your credit utilization below 30 percent, but the lower the better. Credit utilization (30 percent): This shows how much of your overall available credit you’re using.Payment history (35 percent): This is a record of on-time credit card and loan payments, and also any negative marks such as missed payments, collection items and charge-offs. ![]() FICO scores range from 300 to 850 and are calculated using the five main categories of your credit report: payment history, credit utilization, length of credit history, credit mix and new credit. FICO scoresįICO scores are used by 90 percent of top lenders, according to the organization behind the score. If you’ve ever checked your credit score, you’ve probably been shown a three-digit FICO score or VantageScore ranging from 300-850. What are the different types of credit scores? In this article, we’ll discuss the different credit score ranges, the factors that contribute to them and how to improve your credit score. Similarly, showing you've been able to manage a mix of different credit types (e.g., credit cards versus installment loans like a mortgage or auto loan) counts for 10% of your score.Many consumers know a credit score consists of three digits, but some may not know exactly what those numerals actually mean.įICO scores and VantageScores - the two most widely used scoring models - range from 300 to 850. At 10% of your total score, this can have an impact, but it is far less important than the factors above. How many times you've applied for new credit in the past two years can ding your score if it's a high number. This is part of the reason older consumers tend to have higher credit scores. But a credit history that stretches back a few decades, rather than just a few years, will improve your score. At 15%, the weighting of this factor is notably smaller. In other words, how much debt do you have relative to your available credit lines? Lower utilization rates are better for your score. Also heavily weighted, at 30% of your score, credit utilization refers to how much of your available credit you are using at a particular time. It measures how often you have made payments late or on time. This is the single most impactful factor in your score, weighted at 35%. ![]()
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