Calculation of Your Credit Score

Think Credit Reports provides credit reports and monitoring to customers on a subscription basis. In addition, Think Credit Reports helps its customers to understand how their scores compare to national averages and creditor expectations.

Determined by an individual credit bureau, the credit score assigns a number to an individual’s level of responsibility in borrowing and repayment. Scores range from 0 to 800, though most scores lie between 600 and 750. A score incorporates information about the borrower’s payment history, amount owed, types of credit used, amount of new credit, and length of time the person has been borrowing.

For most borrowers, payment history makes up 35 percent of a credit score. This information refers to timeliness of past repayments. Another 30 percent of the score relates to the amounts a borrower owes. Relevant information for this category includes how much of a person’s available credit is being used and how much he or she owes on particular types of accounts.

Types of active credit contribute to 10 percent of a person’s credit history, while the number of new accounts contributes to another 10 percent. If a borrower does not have a long credit history, multiple applications may lower the total score. Credit scores also take into account how long a person’s accounts have been active and how long he or she has had accounts. These factors combine to form a complete picture of an individual’s use of credit throughout his or her lifetime.

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