Spring 2026 - Understanding Credit Scores
April is Financial Literacy Month! Credit is a vital component of financial and housing stability. Your credit score is a number used by creditors to determine how likely you are to pay back your debts. Credit scores are often referred to simply as FICO scores. FICO (Fair Isaac Corporation) is the most commonly used scoring model for lending and credit decisions in the U.S., and scores range from 300-850. Credit scores are calculated with information in the following 5 categories. Note that some have more influence than others!
35% of Credit Score - Account History
Payment history of accounts, including late payments, delinquencies, judgments, and liens.
30% of Credit Score - Utilization Rate
Ratio of total credit extended to the amount of credit owed.
15% of Credit Score - Age of Accounts
Overall length of credit history and average age of accounts.
10% of Credit Score - Credit Inquiries
New credit accounts and recent credit inquiries.
10% of Credit Score - Credit Mix
Variety of accounts (e.g. credit cards, auto loans, mortgage, etc.)
Source: HUD Housing Counselors Training Manual, Module 1.2
Want to read more news from SCDHC? Check out our Spring 2026 Newsletter.