How Credit Scores Are Calculated: Factors, Weights, and Data
Credit scores are calculated by scoring models that compare the information in your credit reports against patterns drawn from large groups of consumers. FICO weighs payment history at about 35% and amounts owed at about 30%; VantageScore uses its own weighting and does not publish fixed percentages.
This guide is general educational information for U.S. readers. It is not financial advice and does not describe your individual credit file. Figures such as score ranges and timeline estimates are typical examples, not promises.
Key takeaways
- A credit score comes from a scoring model that reads credit report data and compares it with the patterns of large groups of consumers.
- FICO's published approximate weights are payment history 35%, amounts owed 30%, length of credit history 15%, new credit 10%, and credit mix 10%.
- VantageScore evaluates similar information but applies its own weighting and does not publish fixed percentages for each category.
- Most credit scores, including FICO and VantageScore, use a range of 300 to 850.
- Equifax, Experian, and TransUnion each maintain a separate file, so a score calculated from one file can differ from a score calculated from another.
- Most negative information, including late payments, stays on a credit report for 7 years; hard inquiries typically remain for 2 years.
Credit scores are calculated by scoring models that compare the information in your credit reports against patterns drawn from large groups of consumers. The model does not read a bank balance or a job history; it reads the file that Equifax, Experian, and TransUnion maintain on you. Most credit scores, including FICO and VantageScore, use a range of 300 to 850.
What a credit score is actually measuring
A credit score is a statistical summary of how someone has handled borrowed money, expressed as a three-digit number. The scoring model evaluates many variables at once and then places that file alongside the patterns of consumers with similar histories. That comparison is what produces the number.
Because the output is a comparison rather than a formula anyone can solve by hand, two people with identical payment records can still receive different scores. The model weighs a whole file, not one item on it. The credit score hub covers what a score does and does not represent.
The five FICO factors and their approximate weights
FICO publishes the categories its model considers, along with approximate weights. VantageScore uses its own weighting and does not publish fixed percentages, so the breakdown below describes FICO specifically.
| Factor | Approximate weight | What the model reads |
|---|---|---|
| Payment history | 35% | Whether accounts were paid on time, how recently any missed payment occurred, and how severe it was |
| Amounts owed | 30% | Balances relative to credit limits on revolving accounts, the number of accounts carrying balances, and total debt |
| Length of credit history | 15% | Age of the oldest account, age of the newest account, and the average age of all accounts |
| New credit | 10% | Recently opened accounts and recent hard inquiries |
| Credit mix | 10% | Whether the file shows experience with both revolving accounts and installment loans |
Payment history
Payment history carries the largest approximate weight in the FICO model at 35%. The model reads the record of payments on revolving accounts such as credit cards and installment accounts such as auto loans or student loans. Severity and recency both matter: a missed payment recorded this year is treated differently in the calculation than the same type of entry from several years ago. The guide to payment history and credit scores explains how that record is assembled from what creditors report.
Amounts owed
Amounts owed carries an approximate weight of 30%. This category includes the relationship between balances and credit limits on revolving accounts, sometimes called utilization, along with the total debt reflected on the file. Utilization is derived from the balance the creditor reports, not from the balance on a particular day of the month, which is why the figure can move between reporting cycles. See credit utilization explained for how that ratio is derived and reported.
Length of credit history
Length of credit history carries an approximate weight of 15%. The model reads the age of the oldest account, the age of the newest account, and the average age across the file. An account closed years ago may continue to count in this part of the calculation because the record of how long it was open remains. More detail is in length of credit history explained.
New credit
New credit carries an approximate weight of 10%. It reflects recently opened accounts and recent hard inquiries, which are the checks a lender runs when someone applies for credit. Hard inquiries typically remain on a credit report for 2 years, although scoring models tend to give them the most attention in the months immediately after the application.
Credit mix
Credit mix carries an approximate weight of 10%. It reflects whether a file shows experience with more than one kind of account, such as a revolving line alongside an installment loan. It is the smallest category in the FICO model. Credit mix explained covers which account types count as distinct.
How VantageScore approaches the same job
VantageScore is the other widely used model family. It evaluates comparable information, including payment behavior, balances, history length, recent activity, and the mix of accounts, but applies its own weighting and does not publish fixed percentages for each category. It also treats some report details differently, and its model versions have changed over time. A side-by-side look is in FICO vs VantageScore.
Where the raw data comes from
Every credit score calculation begins with a credit report, not with the score itself. The Fair Credit Reporting Act, 15 U.S.C. section 1681, sets the framework: creditors furnish account information to the three nationwide credit reporting agencies, and those agencies assemble it into individual files. The law was enacted in 1970 and amended by the Fair and Accurate Credit Transactions Act in 2003.
Under the FCRA, consumers have the right to a free credit report from each nationwide agency every 12 months, and the three agencies currently provide free reports weekly through AnnualCreditReport.com. The Consumer Financial Protection Bureau publishes consumer-facing material on credit reports and scores. The Consumer Financial Protection Bureau was created by the Dodd-Frank Act in 2010 and began operating in 2011.
If a file contains an error, the FCRA generally requires the agency to investigate a dispute within 30 days; the period can extend to 45 days if the consumer provides additional information during the initial 30-day window. Because a scoring model reads report data, a corrected entry is reflected the next time a score is generated. The credit reports hub walks through how files are built and disputed.
What does not go into the calculation
The calculation is bounded by what appears in a credit report. Information that never reaches a report, such as an income figure typed into an application, is not one of the inputs the scoring model reads. A credit score also is not a general measure of financial well-being; it summarizes one record, not a person's whole situation.
Why two scores for the same person differ
Scoring models are matched to specific files, and the files are not identical. Common reasons two scores diverge include:
- Different agencies. Equifax, Experian, and TransUnion may hold different information, because creditors do not all report to all three.
- Different model families. FICO and VantageScore weight categories differently, so the same file produces different numbers.
- Different versions within a family. Lenders choose which model version to request, and older and newer versions can score the same file differently.
- Different timestamps. A balance reported last week may not yet appear in a file pulled today, so two scores generated days apart can differ without any change to the accounts.
How long information stays in the calculation
Timelines matter because the model reads the age and recency of entries. Most negative information, including late payments, stays on a credit report for 7 years. A Chapter 7 bankruptcy stays on a credit report for 10 years, while a Chapter 13 bankruptcy stays for 7 years. Hard inquiries typically remain for 2 years. Those windows describe the credit report itself; how a scoring model treats an entry can shift as the entry ages within that window.
Where monitoring fits into the picture
Because a score is recalculated from report data, the report is the thing being measured. A credit monitoring service watches a file for new inquiries, new accounts, and balance changes, which are the same events that feed the calculation. Separately, a security freeze is free to place, temporarily lift, or remove under federal law, and credit freeze covers how that works. If accounts are opened in someone else's name, the resulting entries can appear in a file and therefore in the calculation; the identity theft section covers reporting options, including filing a report at IdentityTheft.gov.
This page is provided for education only and is not financial advice.
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Frequently asked questions
How is a credit score calculated from a credit report?
A scoring model reads the accounts, balances, payment record, and inquiries on a credit report, compares those patterns with those of large groups of consumers, and produces a three-digit number. FICO publishes approximate weights of 35% for payment history, 30% for amounts owed, 15% for length of credit history, 10% for new credit, and 10% for credit mix.
Are FICO scores calculated the same way as VantageScore?
Both read similar credit report data, but they weight it differently. FICO publishes approximate weights for five categories, while VantageScore uses its own weighting and does not publish fixed percentages. That difference is one reason two scores for the same person can be different numbers.
Which credit report does a score use?
A score generated for a lender is calculated from one credit file, held by Equifax, Experian, or TransUnion, depending on which agency the lender requests. Because the three agencies may hold different information, scores can vary from agency to agency.
How often is a credit score recalculated?
A score is generated on demand or on a schedule, using whatever data is in the file at that moment. Creditors report on their own cycles, so a score can change even when nothing about the underlying accounts has changed.
Does income affect how a credit score is calculated?
Income is not one of the inputs. Scoring models read credit report data, and an income figure supplied on a credit application is not an item the model reads when producing the number.
How long does negative information stay in the calculation?
Most negative information, including late payments, stays on a credit report for 7 years. A Chapter 7 bankruptcy stays for 10 years and a Chapter 13 bankruptcy for 7 years, while hard inquiries typically remain for 2 years.
Related guides
- Credit Score Ranges Explained
- Fico Vs Vantagescore
- Payment History And Credit Scores
- Credit Utilization Explained
- Length Of Credit History Explained
- Credit Mix Explained