How To Calculate My Credit Score

Having a good credit score can help you qualify for low rate private student loans, credit cards, auto loans, and historically low mortgage rates. But how do you know if you have a good credit score or not? Is there a way to calculate my credit score? We will try to answer these questions over the next few moments.

Your FICO score can land anywhere on a 500 point range from 300 to 850.

Take a look at the numbers below at the factors that live score determine your FICO score:

35% Payment History – equal to 192.5 points of your score
30% Amounts Owed – 165 points
15% Length of Credit History – 82.5 points
10% New Credit – 55 points
10% Types of Credit in Use – 55 points

As you can see if you want to have the best chance of obtaining a high score, you want to pay all your bills on time and keep the amounts you owe to creditors to a minimum.

Now what you can do is obtain all 3 of your free credit reports from the government’s annualcreditreport.com site and start reviewing all the information. The longer you have paid all your bills on time the higher the chance you’ll receive all 192.5 points in the payment history section. 24 months of on time payments is good, 36 months is better, 48 months and longer is best.

Next you check how much you owe on each credit card or outstanding loan. If all your credit cards are maxed out you will have a lower score somewhere in the 600s or below. If you have used half of your outstanding credit lines, you may be able to get 80 points or more from the amounts owed section.

Next you look at how long your accounts have been opened. Five years is good, 10 years is better, and 15 years or more is best. If you are a 21-year-old recent college graduate, it is not possible for you to have a long-term credit history so you will be unfairly dinged for this section of your FICO credit score. The only way to get more points from this section is to keep your accounts open and pay all your bills on time.

The next section to help you manually calculate your credit score is looking at your new credit. MyFICO states that you only apply for credit that you really need. Even hard inquiries can lower your score. These can come from insurance companies, mortgage companies, or credit card companies to name a few. So if you don’t need new credit, don’t apply and you can add an easy 55 points to your FICO credit score.

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