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 a good 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.
