FICO score calculation by factors

[Anonymous]

So I am new to this thread and just started understanding FICO score and so far this is what I understood about my score. Is this how the total of 850 score calculated?

35% Payments - 297.5 Points

30% Debt - 255 Points

15% History - 127.5 Points

10% credit mix - 85 Points

10% inquiries - 85 Points

__________________________

Total - 850 Points

I believe this is how FICO score is calculated overall. Now let's look at my credit score, my score right now is 745. It took me 1 and half years to get here from 533.

96% on-time payments of 35% - 285.6 

0% debt (CC paid in full, student loan $2000 left/$32000) - 255 Points 

No inquiries - 85 Points

Credit Mix (Yet to try AZEO) - 60 (3 credit cards, 1 student loan, 1 monthly rental payments)

Credit history (oldest account 4.2 years, newest 1 month, average 3.4) - 60 Points

________________________________________________________________________________________

Total - 745.6

So this is how I think my score has been calculated. The way I look at it, the only way to boost my FICO is by trying AZEO and giving a boost to credit mix by 8-12 points, which will take my score to 753-755.

So basically unless my credit report age, there is nothing I can do but sit and watch. It can take years.

Is my calculation correct or I am missing something?

[kilroy8]

It is a calculation that you can never get correct, as it is a closely held secret. For example, the range is 300 to 850, which means only 550 points can be awarded in any case. 

That said, many on here have experimented a lot and have come up with some solid information, mostly around utilization, payment history, and credit mix. Search the forums and ye shall find.

[Anonymous]

Yeah, I was wondering the same, one of my friend with same credit age as mine has a FICO score of 812. That's off, even if he scores 100% in all  factors, due to his credit age, he can't cross 800 imo.

[kilroy8]

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@Anonymouswrote:

Yeah, I was wondering the same, one of my friend with same credit age as mine has a FICO score of 812. That's off, even if he scores 100% in all  factors, due to his credit age, he can't cross 800 imo.

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This can be overcome with the miracle of the AU (Authorized User). A person can have a credit history older than they are using this.

[Anonymous]

Yeah, unfortunately I don't have anyone to do that for me. But lets wait and watch, not giving up and trying different methods.

[SouthJamaica]

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@Anonymouswrote:

So I am new to this thread and just started understanding FICO score and so far this is what I understood about my score. Is this how the total of 850 score calculated?

35% Payments - 297.5 Points

30% Debt - 255 Points

15% History - 127.5 Points

10% credit mix - 85 Points

10% inquiries - 85 Points

__________________________

Total - 850 Points

I believe this is how FICO score is calculated overall. Now let's look at my credit score, my score right now is 745. It took me 1 and half years to get here from 533.

96% on-time payments of 35% - 285.6 

0% debt (CC paid in full, student loan $2000 left/$32000) - 255 Points 

No inquiries - 85 Points

Credit Mix (Yet to try AZEO) - 60 (3 credit cards, 1 student loan, 1 monthly rental payments)

Credit history (oldest account 4.2 years, newest 1 month, average 3.4) - 60 Points

________________________________________________________________________________________

Total - 745.6

So this is how I think my score has been calculated. The way I look at it, the only way to boost my FICO is by trying AZEO and giving a boost to credit mix by 8-12 points, which will take my score to 753-755.

So basically unless my credit report age, there is nothing I can do but sit and watch. It can take years.

Is my calculation correct or I am missing something?

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I have no inside information on the algorithms, but I don't think your calculations are correct at all.

In the first place, FICO 8 is just one of a number of scoring models in use. Each scoring model has a different algorithm.

Secondly, 96% on time payments would not give 96% of the points for payment history.  I'm sure you're losing more than 4% of the on time payment points by having even a single late payment.

0% debt would not give you 100% of the amount of debt. In fact, you would get points for having one credit card report a small balance, and having a loan report a small balance.

I don't think rental payments count as part of credit mix.

The age of your profile is young. You would get a lot of points with the passage of time.  On some models it would count for more than others. I can only guess but it's possible your estimate of 60 points is reasonable.

[Anonymous]

As has been mentioned already, there is only 550 point span between worst possible score and best possible score.

The different scoring factors can be weighed differently (different signal strength) depending on profile.  An adverse event on one profile may impact it 4 points where on another profile it could be 15 points.  It's not at all black or white here, as there are a thousand shades of gray in between.  There is no simple math that one can do to attempt to decode a FICO algorithm.

[Thomas_Thumb]

Score ranges are even more limited within individual scorecards. My guestimate is:

-Max range for any single clean scorecard = 250 points [total 8 clean scorecards for Classic Fico 8]

-Max range for any single dirty scorecard = 350 points [total 4 dirty scorecards for Classic Fico 8]

[Anonymous]

A quick followup to SouthJ's guidance. 

Our OP also indicates that the AZEO strategy benefits the Credit Mix category.  That's not quite right either.  AZEO as a strategy is addressing the Amounts Owed category.

To summarize the advice thus far, our OP shouldn't try to guess the exact way the algorithm is implemented on the back end.  When he tries to do that, he is running into some big errors.  Possible the most notable was infering that having 96% of his payments on time gave him 96% of the available points from the Payment History category, but there were other errors as well.

Rather, he should use the big pie chart that displays the relative weight of the five score groups as a guide to what things he should concern himself with most.  Payment History and Amounts Owed are the biggest -- and also, at least in terms of future behavior, the ones most under his control.

Then within each category he can get some practicial advice about what to do.  E.g. with PH, he could explore Goodwill Letters.  With Amounts Owed he could implement AZEO (though not as a long term building strategy -- just to see how much help it can give him) and consider the possibility of paying down installment debt but still keeping it open.  And so on.