Your credit score is essentially a prediction of whether or not you will be able to pay your bills on time. You actually have multiple credit scores which are calculated using two different scoring models, FICO and VantageScore. Depending on where you are viewing your score, or where you are applying for credit, the type of scoring model that is used may be different. Your score can vary by as much as 100 points depending on the particular model that is used and the type of credit you are applying for.

While there are different scoring models used in different situations, the information that is looked at is the same across the board. FICO and VantageScore review the same information however, each gives different weight to each category.

FICO breaks your credit report down into five different categories.

Each of these categories represents a percentage of your overall score.

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

The importance of each of these categories will vary from one person to the next based on their individual credit history. For example, someone with a short credit history will not have their score calculated in the same way as someone with a very old credit history.

VantageScore separates your data into six categories, each with a specific influence on your score.

• Payment history: extremely influential
• Age and type of credit: highly influential
• Percentage of credit limit used: highly influential
• Total balances and debt: moderately influential
• Recent credit behavior and inquiries: less influential
• Available credit: less influential

Just as with FICO, your score may be calculated differently than someone with a different credit history.

When it comes to calculating your credit score, similar factors are used by both the FICO and VantageScore models. To maximize your score, do your best to make all payments on time, keep your balances low, and only apply for the credit that you truly need.