How are credit scores calculated?

Computer algorithms called credit scoring models assign credit scores using complex statistical analyses that predict your likelihood of defaulting on your loans (i.e., being 90 days or more overdue on a payment). These models look for combinations of data in your credit report that historically have been associated with payment defaults across large consumer populations—and assign scores based on their prevalence (or absence) in your credit history.

There are hundreds of different credit scoring models available to lenders. Each differs somewhat in the way it calculates your score, and the specific math each one uses is kept secret for competitive purposes—and to prevent tampering or gaming the system.