FICO Credit Scores

David A. Szwak

FICO Credit Scores

Postby David A. Szwak » Wed Nov 30, 2005 9:59 am

FICO scores and its variants are designed to measure the risk of default, by taking into account various weighted factors:
35% punctuality of payment in the past
30% capacity used, i.e., ratio of current revolving debt (e.g. credit card balances) to total available revolving credit (e.g. credit limits)
15% length of credit history
10% types of credit used (installment, revolving)
10% amount of credit obtained in the recent past

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