What Makes Up My Credit Score?

Learn the five categories that make up your credit score and how its calculated with our infographic.

What Makes up my Credit Score?

You know how important your credit score is to your financial health, but do you know how your credit score gets calculated? Knowing what gets calculated - and how - will help you understand how to keep your credit score healthy. Our infographic below outlines some of the key points to get you started.

Understanding Your Credit Score Infographic

Understand the Credit Score Elements 

 

Fico Score Elements

  • Payment History = 35%
  • Amount Owed = 30%
  • Length of Credit History = 15%
  • Credit Mix Currently in Use = 10%
  • New credit = 10%

3 Major Credit Bureaus

There are three major credit bureaus that each calculate their own score using FICO software, and the credit score ranges differ. If you have a First Federal Bank Credit Card, you can view your FICO Score for free at MyCardStatement.com

What Damages Your Credit Score?

There are activities that you may be engaging in that can damage your credit score. Learn what they are and how to avoid them. 

Negative Credit Score Items

How long do negative items impact your credit score? Penalties can range from 2-10 years. 

Free Annual Report

All Americans are entitled to one free credit report in every 12-month period from each of the three credit bureaus. 

Interested in learning more? Contact us at First Federal Bank. We are always happy to help make your financial journey as successful as possible. 

Credit Score Elements

You know how important your credit score is to your financial health, but do you know how your credit score gets calculated? Knowing what gets calculated - and how - will help you understand how to keep your credit score healthy.

Payment History = 35%

Your payment history is the most important part of your credit score, making up 35%.

Amount Owed = 30%

The amount of debt you owe represents 30% of your credit score. Less is more in terms of a higher credit score.

Length of Credit History = 15%

Typically, the longer your credit history, the higher your credit score. Having no credit history or a brief history may lower your score.

Credit Mix Currently in Use = 10%

The different types of credit (installment loans and/or revolving credit) that you are using makes up 10% of your FICO Score.

New credit = 10%

10% of your credit score is made up of any new credit that you’ve recently taken on. Too much new credit could lower your credit score.

3 Major Credit Bureaus

There are three major credit bureaus that each calculate their own score using FICO software, and the credit score ranges differ. Your score may vary slightly from based on the information each bureau reports.

Credit Score Ranges per Credit Bureau:

  • TransUnion: 300-850
  • Equifax: 300-850
  • Experian: 340-820

Credit Score Fast Facts

  • Married couples have separate FICO scores.
  • You need a credit history before you have a credit score.
  • It’s against the law to consider age, race, religion and national origin when determining credit score.

What Damages Your Credit Score?

  • Missed payments
  • Overspending using credit
  • Closing credit cards that have a positive credit history
  • Applying for credit too frequently
  • Relying only on credit cards or one form of credit to build credit history

Negative Credit Score Items

How long do negative items impact your credit score?

Up to 2 Years

  • Inquiries and credit checks

Up to 7 Years

  • Charge-off accounts
  • Closed accounts
  • Collection accounts
  • Judgements
  • Late payments
  • Tax liens

Up to 10 Years

  • Bankruptcy

Free Annual Report

All Americans are entitled to one free credit report in every 12-month period from each of the three credit bureaus. Visit AnnualCreditReport.com to access your free report. Requesting your credit score can also be requested – but for a fee.

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