How Is a FICO Credit Score Calculated

question 78

Multiple Choice

How is a FICO credit score calculated?

• A)Payment history accounts for about 35% of the credit score,amount owed accounts for 30%,length of credit history accounts for 15%,new credit accounts for about 10%,and types of credit in use accounts for about 10%.
• B)A FICO credit score is calculated solely on payment history.
• C)50% of a FICO score is determined by how much is owed and 50% is determined by payment history.
• D)25% is determined by payment history,20% is determined by how much is owed,25% is determined by length of credit history,and 25% is determined by types of credit in use.

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Definitions:

Processing Capacity

Refers to the amount of information an individual can process and maintain in their working memory at one time, influencing learning and cognitive tasks.

Libido

In psychoanalytic theory, the drive toward the creation, nurturing, and enhancement of life (including but not limited to sex), or the energy stemming from this drive; also called psychic energy.

Mental Energy

A concept referring to the power of the mind to think, reason, and engage in purposeful action, often seen as a finite resource that can be depleted.

Id

Refers to a component of the psychoanalytic personality theory developed by Sigmund Freud that is responsible for our innate desires and urges, operating based on the pleasure principle.