Your particular score will depend on the credit bureau providing the FICO score. Equifax, Experian, and TransUnion are the three credit bureaus and they each have their own formula for calculating your score. Your score will range from a low of 300 to a high of 850 with a higher number being better.
The reason credit scores are tabulated is to predict your future credit success or failure on that specific date. Your score is not dependent on your income, employment or your assets. The bureau's look at the amount you owe on your most recent statements, making your available credit the most important factor. Having a lot of credit cards is not detrimental to your credit score as long as the total balance on all credit cards is low. In fact, about 30% of your FICO score is based on the total debt outstanding.
The most important factor in determining your score is timely payments. One late payment will stay on your credit report for up to one year, very late payments stay for two or three years, and collections and bankruptcies can last up to seven years.
Some people worry about opening checking accounts or looking at cars because they think their credit scores will drop. Some may look into your credit history so it is better to ask if they will do so and proceed from there. If you are looking for a new car or buying a house and have multiple inquiries, as long as they happen within a few weeks of each other, they will only count as one credit check. These credit checks will stay on your record for up to a year.
