What's a credit score?

FICO Score Factors

VantageScore Factors

uses percentages as an approximation of factor influence

lists the factors by how influential they generally are

Payment history = 35%
Amounts owed = 30%
Length of credit history = 15%
Credit mix = 10%
New credit = 10%

Total credit usage, balance, and available credit = extremely influential
Credit mix and experience = highly influential
Payment history = moderately influential
Age of credit history = less influential
New accounts opened = less influential

There is no "one" credit score.

Your credit score is unique to your individual credit profile, and it evolves frequently. More importantly, since a credit score depends on the data provided, it will likely differ depending on the scoring model used, the source of your credit history, and the timing.

Credit Report Data

Timing

Scoring Models

Scores rely on data from credit reporting companies, and each may have slightly different data.

Scores depend on when data is updated at a reporting company and when your score is actually calculated.

Different companies have different models --and different versions of models -- for calculating scores.

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A basic definition.

In order to understand credit scores, you need to know what credit actually is. As defined by Experian, "Credit is an agreement you have with a lender to obtain goods or services that you pay for at a later date under agreed-upon terms." The simplest way to think of credit is in terms of a loan -- the lender will you the money, which you then have to repay over time along with interest and other potential fees.

Therefore, as the Consumer Financial Protection Bureau states, a credit score is a numerical rating that "predicts how likely you are to pay back a loan on time."

The deciding factors.

Companies use different scoring models to calculate your score based on the information in your credit report. Typically, your credit score is based on the following factors:

Your payment history (for both credit cards and loans)
Your current unpaid debt and when it started
Your credit mix (types of accounts you own)
Your length of credit history
Your credit utilization (how much of your available credit you're using)
Recent activity/new applications for credit

Spot the difference.

Some lenders create their own custom credit scoring programs, but the two most commonly used credit scoring models are the ones developed by FICO and VantageScore. The two companies vary slightly in their categorization of factors, and each places greater weight or importance on different factors.