Credit Repair Kit For Dummies, 4th Edition
Book image
Explore Book Buy On Amazon

The two major credit scoring models are FICO and VantageScore. The FICO score is better known, but VantageScore is gaining in usage every year. The components and weightings that are used to calculate credit scores are different for each model. Knowing how the scores are computed enables you to take actions to maximize your score.

  • FICO

    • Payment history (35 percent)

    • Amount and type of debt (30 percent)

    • Length of time you’ve been using credit (15 percent)

    • Variety of accounts (10 percent)

    • Number and types of new accounts and credit increase requests (generally in the last six months or so) (10 percent)

  • VantageScore

    • Payment history (40 percent)

    • Age and depth (length and types) of credit (21 percent)

    • Utilization of credit lines (20 percent)

    • Balances (11 percent)

    • Recent credit and line increases requested by you (5 percent)

    • Available credit limits on all your accounts (3 percent)

About This Article

This article is from the book:

About the book author:

Steve Bucci, BA, MA, is a personal finance expert and a nationally syndicated columnist whose column is carried by the financial megasite and the Scripps Howard News Service.

This article can be found in the category: