When checking your application for a credit card or a loan, most lenders will assess your creditworthiness, or your likelihood of paying back what you borrow, by looking at your 3-digit credit score.
While there are various scoring models lenders choose from, most use the FICO credit scoring model by Fair Isaac Corp. to measure consumers' risk. FICO scores range from 300 to 850, or from very poor credit to excellent credit.
Wherever your credit score falls, it's worth noting what can make your score go up or down. But you also should understand what doesn't get considered into your score's calculation at all.
Below, CNBC Select lists the 12 factors FICO ignores when calculating your credit score.
What doesn't impact your credit score
Here's what's not included in your score, according to FICO.
- Your race, religion, sex, marital status or any disability you may have
- How old you are
- Your job and how much money you make
- Any public assistance you receive
- Where you live
- Interest rates on your credit cards or other loans
- Any child support obligations you have
- Whether you're in credit counseling
- Requests you or your employers have made to see your credit history
- Information that hasn't shown up on your credit report yet
- Information that has rolled off of your credit report
- Any other information that is not applicable to credit or that doesn't show how you would use credit
What actually impacts your credit score
It's reassuring to know that your age and your salary won't determine whether you have agood or bad credit score, but you should still know what lenders will see when they evaluate your risk.
These factors include your payment history, your outstanding balances (or your credit utilization rate), your length of credit history, how frequently you apply for new credit and the variety of credit products that you have, such as a mix of credit cards, a mortgage, a car loan, etc.
If you are working your way toward better credit, know that there are cards to help you do that. For those struggling to get approved for a credit card, the OpenSky® Secured Visa® Credit Card doesn't run a credit check, and the Capital One Platinum Secured Credit Card (see rates and fees) requires a low deposit of $49, $99 or $200, based on your creditworthiness. Those who qualify for the minimum deposit as low as $49 or $99 deposits, can still receive a $200 credit limit (which most secured cards offer but with a higher deposit upfront).
Once you get approved for either of these cards, ensure you pay off your balances each month on time and in full to be on your way to a better credit score.
Click here to view the Cardholder Agreement for the OpenSky® Secured Visa® Credit Card.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
FAQs
FICO® Scores consider a wide range of information on your credit report. However, they do not consider: Your race, color, religion, national origin, sex and marital status.
What do FICO scores ignore? ›
FICO® Scores consider a wide range of information on your credit report. However, they do not consider: Your race, color, religion, national origin, sex and marital status.
What is not considered when calculating your FICO score? ›
Your age. Other types of scores may consider your age, but FICO scores don't. Your salary, occupation, title, employer, date employed or employment history. Lenders may consider this information, however, as may other types of scores.
Which of these factors is not used to calculate your FICO score? ›
Debit card use is not a factor that is used to determine your FICO credit score. Your FICO credit score is calculated using five factors: payment history, credit utilization, length of credit history, types of credit used, and new credit.
What factor is not considered when determining credit scores? ›
Not only do FICO® Scores ignore your income, but they do not consider your employment history or occupation when calculating your score either. But lenders may use this type of information to decide whether to approve you for financing, and what interest rate and terms to offer you.
Why is my FICO score not accurate? ›
The accuracy of your score will depend on factors such as which FICO Score model is being used; the credit bureau your report is pulled from; and whether your credit reports have up-to-date information. Errors on your credit report could also affect the accuracy of your FICO score.
What affects FICO score the most? ›
Payment history (35%)
The first thing any lender wants to know is whether you've paid past credit accounts on time. This helps a lender figure out the amount of risk it will take on when extending credit. This is the most important factor in a FICO Score.
What factors do not influence a score? ›
The following items may influence your finances, but they generally won't have any effect on credit scores:
- Paying with a debit card. ...
- A drop in salary. ...
- Getting married. ...
- Getting divorced. ...
- Having a credit application denied. ...
- Having high account interest rates. ...
- Getting help from a credit counselor.
Which of following is not a factor in determining a FICO score? Paying cash for all purchases.
What is not used to calculate credit score? ›
Credit score calculations do not consider requests a creditor has made for your credit report for a preapproved credit offer, or periodic reviews of your credit report by lenders and creditors you have an existing account with. Checking your own credit also doesn't affect credit scores.
The main categories considered are a person's payment history (35%), amounts owed (30%), length of credit history (15%), new credit accounts (10%), and types of credit used (10%).
Which of the following is not a main factor used to calculate your credit score? ›
Factors that don't affect your credit score
Rent and utility payments: In most cases, your rent payments and your utility payments are not reported to the credit bureaus, so they do not count toward your score. The exception is if you use a rent-reporting service or if you are late on utility payments.
Is a 900 credit score possible? ›
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Which factor does not affect your credit score answer? ›
Your bank balance: Your CIBIL score is unaffected by the balance in your bank account. Your credit score won't be impacted by how much money you have in the bank or in your investment portfolio. Additionally, an inactive savings account with a negative or zero bank balance has no impact either.
What are credit scores not influenced by? ›
Factors that do not influence your credit score are: Race, color, religion, national origin, sex, or marital status.
What factors to consider when calculating credit score? ›
A FICO credit score is calculated based on five factors: your payment history, amount owed, new credit, length of credit history, and credit mix. Your record of on-time payments and amount of credit you've used are the two top factors. Applying for new credit can temporarily lower your score.
What is something that will not directly alter your FICO score? ›
Factors that don't affect your credit score
Rent and utility payments: In most cases, your rent payments and your utility payments are not reported to the credit bureaus, so they do not count toward your score. The exception is if you use a rent-reporting service or if you are late on utility payments.
What will lower your FICO score? ›
Reasons why your credit score could have dropped include a missing or late payment, a recent application for new credit, running up a large credit card balance or closing a credit card.
Which FICO score matters the most? ›
The FICO credit-scoring model has been updated over the years, resulting in multiple versions of the score. FICO Score 8 is the most commonly used. But the version may vary by lender and credit product, like applying for a credit card versus financing a car.
Does one's income matter on a FICO score? ›
It's reassuring to know that your age and your salary won't determine whether you have a good or bad credit score, but you should still know what lenders will see when they evaluate your risk.
