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 |