Calculating Your Credit Score

How is your credit score calculated? Your credit score is a three-figure score ranging from 300 – 850 that shows your creditworthiness. Credit scores are calculated using many different pieces of credit data from your credit report. This data is grouped into five categories:

• payment history,
• amounts owed,
• length of credit history,
• new credit  and
• credit mix

Review the image above to see how each area is weighted to determine which category contributes the most or least to your credit scores.
Look for the next series of emails to go much deeper into how your credit scores are calculated, ways to increase and maintain your credit score including do it yourself methods.