The Fair Isaac Corporation, which calculates most credit scores, calculates FICO scores using information from credit reports, including consumers' payment histories, amounts owed, length of credit history, new credit and types of credit, reports Bankrate. Consumers' personal credit profiles impact which formula FICO uses to calculate individual credit scores.
As of 2015, payment history constitutes 35 percent of a FICO credit score calculation, explains myFICO. This includes late payments for all types of financial accounts as well as factors such as wage attachments, foreclosures, lawsuits and bankruptcies. The amounts that consumers owe on credit accounts make up 30 percent of credit score calculation. FICO considers how much a consumer owes, the amount and types of accounts with balances, overall credit balance, and how well a consumer is paying down installment loans. The length of credit history, which is 15 percent of the FICO calculation, includes how long credit accounts have been established and when consumers last used them.
Opening too many new lines of credit negatively impacts a credit score, and this comprises 10 percent of a FICO credit score calculation, according to myFICO. FICO considers the mix of types of credit a consumer uses, and this accounts for another 10 percent of the FICO score. In considering individual credit profiles, FICO looks at how long consumers have been using credit and how information in credit reports changes over time.