Cal11 calculator
Search calculator...

The Fico Score Calculation Includes All of The Following Except

Reviewed by Calculator Editorial Team

A FICO score is a three-digit number that lenders use to assess your creditworthiness. The calculation includes several key factors, but there are some important exclusions you should know about.

What Is a FICO Score?

A FICO score is a credit score developed by Fair Isaac Corporation. It ranges from 300 to 850, with higher scores indicating better creditworthiness. Lenders use FICO scores to determine whether to approve credit applications, set interest rates, and determine loan terms.

The most common FICO scoring models are FICO Score 8 and FICO Score 9. These models use different formulas and weightings to calculate your score, but both are based on the same five key factors.

Components of a FICO Score

The FICO score calculation includes the following five factors:

  1. Payment History (35% weight) - This factor accounts for your history of paying bills on time. Late payments or collections can significantly lower your score.
  2. Amounts Owed (30% weight) - This factor considers the total amount of credit you're using relative to your available credit limits. High utilization can hurt your score.
  3. Length of Credit History (15% weight) - This factor looks at how long you've had credit accounts open. Longer credit history is generally better.
  4. New Credit (10% weight) - This factor evaluates how recently you've applied for new credit. Too many recent applications can lower your score.
  5. Credit Mix (10% weight) - This factor considers the types of credit accounts you have. Having a mix of different account types can help your score.

The percentages shown are approximate weightings for FICO Score 8. FICO Score 9 uses slightly different weightings but is based on the same five factors.

What the FICO Score Calculation Excludes

The FICO score calculation intentionally excludes several factors that might affect your creditworthiness but are not considered in the scoring model. These exclusions include:

  1. Income - Your income level does not factor into your FICO score. Lenders may consider income when determining loan amounts or interest rates, but it's not part of the scoring calculation.
  2. Employment History - Your job history and stability are not included in FICO score calculations. However, lenders may still review employment information when making lending decisions.
  3. Debt-to-Income Ratio - While lenders may use your debt-to-income ratio when evaluating your application, it's not part of the FICO score calculation itself.
  4. Credit Inquiries - While too many recent credit inquiries can hurt your score, the FICO model specifically excludes this factor from its calculation.
  5. Public Records - Bankruptcies, tax liens, and other public records are not included in FICO score calculations, though they can appear on your credit report.

The FICO score formula can be represented as:

FICO Score = (Payment History × 35%) + (Amounts Owed × 30%) + (Length of Credit History × 15%) + (New Credit × 10%) + (Credit Mix × 10%)

How to Improve Your FICO Score

While you can't directly control all the factors included in your FICO score, you can take steps to improve your score by focusing on the key components:

  1. Pay Bills on Time - Establish a system to pay all bills on time, every time. Set up automatic payments if needed.
  2. Reduce Credit Card Balances - Try to keep your credit card balances below 30% of your available credit limit.
  3. Keep Old Accounts Open - Avoid closing old credit accounts, as this can shorten your credit history.
  4. Limit New Credit Applications - Only apply for new credit when necessary, and space out applications.
  5. Diversify Your Credit Mix - If possible, have a mix of different types of credit accounts (credit cards, installment loans, etc.).

Improving your FICO score typically takes time, but following these strategies can help you build better credit over the long term.

FAQ

What is the difference between FICO Score 8 and FICO Score 9?
FICO Score 9 is the latest version of the FICO scoring model. It uses slightly different weightings for the five key factors and may produce different scores than FICO Score 8 for the same credit report.
How often does my FICO score change?
Your FICO score can change multiple times in a single day as new information is reported to the credit bureaus. However, significant changes typically take at least 30 days to appear on your credit report.
Can I see my FICO score for free?
Yes, you can view your FICO score for free through services like AnnualCreditReport.com, Credit Karma, or MyFICO.com. Some credit card issuers also provide free FICO score access to their cardholders.
What is a good FICO score?
A good FICO score is generally considered to be 740 or above. Scores above 800 are considered excellent, while scores below 670 are typically considered poor.
How long does it take to improve a FICO score?
Improving your FICO score can take anywhere from a few weeks to several months, depending on the specific changes you make and how quickly those changes are reported to the credit bureaus.