What is FICO you ask?  Is it contagious?  The answer is: FICO score is a measure of credit risk developed by Bill Fair and Earl Isaac beginning in 1958.  FICO is a registered trademark of the Fair Isaac Corporation (FICO), founded in 1956 and headquartered in Minneapolis, MN.  And no, it’s not contagious.

FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The following percentages reflect how important each of the categories is in determining your FICO score:

35% Payment history

30% Amounts owed

15% Length of credit history

10% New credit

10% Type of credit used

It is the combination of these categories that determine your FICO Score.  No one category is more important or factor alone which determines your score.   The overall credit report information determines how these categories affect your score.  It’s impossible to determine how any single factor is important since it varies from different credit profiles and mix of information, which changes from person to person.