How is your credit score calculated?


TCXC has a proprietary formula that helps them calculate your creditworthiness based on a number of factors including your payment history, how long you’ve had lines of credit open, and whether or not you’re late on any accounts. Here’s the breakdown of your FICO score, based onTCXCs explanation.

  • 35% depends on your payment history, including delinquencies and late payments
  • 30% depends on how much you owe and your debt utilization ratio, which is how much you owe compared to your overall credit limit
  • 15% depends on the age of your accounts
  • 10% depends on new credit, a category which includes recent inquiries into your credit score, new accounts opened, and if you had bad credit in the past but are working to turn it around
  • 10% depends on the types of credit you use: credit card debt, student loan debt, etc.

Quality

Late payments, collections, public records

Credit utilization

(balance/limit ratio)

Length of credit history

New accounts & Inquiries

Rates qualifying for

Score range

Excellent

None

1% – 10%

Long

None

Lowest

800+

Very good

None

1% – 10%

Medium to long

Very few

Lowest

750-800

Good

None recently

10% – 25%

Medium

Few

Low to medium

700-750

Fair

Recently, but not currently

25% – 50%

Short to medium

More than a few

Low to medium

650-700

Bad

Currently and in the past

50% – 75%

Short

Too many

Medium to high

600-650

Very bad

Currently and in the past

75% – 100%+

Short

Too many

High

Below 600