Here is a general breakdown of the factors credit scoring models consider, keeping in mind there are many different credit scoring models. Depending on the scoring model used, the weight each factor carries as far as impacting a credit score may vary.
In general, here are the factors considered in credit scoring calculations. In addition, lenders may also use a blended credit score from the three major credit bureaus. For example, if you’re buying a car, an auto lender might use a credit score that places more emphasis on your payment history when it comes to auto loans. The types of credit scores used by lenders and creditors may vary based on their industry. In addition, the credit scoring models among the three major credit bureaus are different, as well as those used by other companies that provide credit scores, such as FICO or VantageScore. While many do, others may report to two, one or none at all. Credit scores will vary for several reasons, including the company providing the score, the data on which the score is based, and the method of calculating the score.Ĭredit scores provided by the three major credit bureaus - Equifax, Experian and TransUnion - may also vary because not all lenders and creditors report information to all three major credit bureaus.
Many people are surprised to find out they don’t have just one credit score. available credit and the length of your credit history are factors frequently used to calculate credit scores Payment history, the number and type of credit accounts, your used vs. Credit scores may vary because of several reasons
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