Credit 101

There are five major factors that impact your FICO® credit score.

Credit Strong provides the FICO score to Credit Strong account holders and updates your FICO score monthly free of charge when you have an open Credit Strong account. We also provide the top two factors that are currently impacting your FICO credit score. Unlike the Vantage 3.0 credit score, which is provided by several free credit monitoring websites, FICO is the Score Lenders Use®. 90% of top lenders use FICO scores when making lending decisions.

How FICO Scores Work

Your FICO score is calculated by a computer algorithm that evaluates many sources and types of information on your credit report when you apply for credit. By analyzing the information and patterns in your credit profile to patterns in millions of past credit reports, your FICO score provides lenders a consistent and reliable assessment of how risky it may be to lend you

Payment History

Payment History is a record of every payment or non-payment for past extensions of credits you received. Approximately 35% of a FICO® Score is based on this information,

The Amount You Owe

Amounts Owed reflects how much you owe each creditor individually and in total. It includes your utilization rate for revolving lines of credit (e.g. credit

Length of Credit History

Length of Credit History is the length and age of each trade line on your credit report individually and in aggregate. Approximately 15% of a FICO® Score is based on

Types of Credit in Use

Credit Mix is the types of credit used. Examples may be revolving credit cards or revolving lines of credit, or installment credit like a fixed loan amount.

New Credit

New Credit is the new account opening activity and any recent ‘hard’ credit inquiries from lenders on your credit report. Approximately 10% of a FICO® Score is based on

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Credit 101

How FICO Scores Work

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