In most cases, the details of the credit score rating scale used by the most credit bureaus are closely guarded trade secrets. The secrets are shrouded within the guidelines of the companies that have built the scoring credit score rating scale.
Let me however say that, the best known and most widely used credit score rating scale model of the FICO judges your credit score on a credit score rating scale from 300 to 850.
This was developed by the Fair Isaac Corp, and it is in use by the major credit bureaus- even though with slight variations. Due to the complexity of statistical analysis used in credit score rating scale and also the scoring algorithms which are not publicly advisable, it is very difficult for you to measure your own credit score on a reliable credit score rating scale.
But, this is not to say that Fair Isaac general method for measuring your credit score is not reliable. It is a computer generated scoring method. With any credit score rating scale, you need to bear in mind that, certain factors are put into consideration to calculate a good credit score.
The first of these factors is your payment history. This counts for about 35% of your credit score. In fact, it is the most heavily weighted factor used in calculating your credit score. So, if you pay your bills on time, chances are that you will have had a positive influence on your score, while late or missed payments will negatively bring down your credit rating.
Your total credit and total debt count for about 30%. This factor tends to look at how much debt you have compared to the overall amount of credit you have on your account. Should you have all your accounts maxed out; you stand a poor credit risk. After all, this will mean that you are struggling to pay off your debt. If your account balance is too low, compared to your available credit, this aspect of risk analysis will improve your entire credit score.
These two factors are considered independently. In addition, people with too much of credit available stand a higher credit risk. But the sad issue is that bureaus do not actually specify what they consider excessive. So, my advice is that you should use your credit conservatively and keep your credit-to-debit limit ratio as low as possible.
Finally, the length of your positive credit history also plays a vital role among other factors, accounting for at least 15%. The longer you maintain your accounts in good standing; the better will be your credit score.
This credit score rating scale measures your ability to make a long-term commitment to your creditor and is responsible for making your payments. So, you should not apply for too many credits in a short period of time. After all, the number of new credits you apply for in recent time counts 10%.