How Is the Credit Score Calculated?

While different credit scoring models may use a different format the basic information that is used to calculate a credit score is:

Payment History 30%,

Debt Level 30%,

Age of Credit 15%,

Mix of Credit 15% and

Credit Inquiries 10%.

This is the basic information that is present on your credit file which is used to calculate your credit score for consumer. The exact calculation formula and how each information is treated is a well-kept secret. There are various factors that affect the credit score. No wonder individual information will have the same effect on the credit score for every consumer. Various different factors and information present on the credits report will influence the credit score in totality.

For example, a single late payment on the credit file of a person who has a score over 700 will have a more severe impact on the credit score than full person who already has a credit score of 650 or so.