Fair Isaac (the company that invented the FICO scoring system) does not give out the exact formula for computing your FICO credit score. However, we do have something to work with—the factors that weigh on your credit and its exact percentages. Your credit score is calculated using the following five factors. They percentages is how heavily it weights on your credit score.
The average FICO credit score in the United States is a 687. The medium credit score in the US is a 723. Which one is a better determinant of the credit worthiness of Americans? In assessing credit scores, the medium is a better indicator when assessing the credit scores of Americans on the aggregate. That is because in terms of talking about an average credit score, that is just a number and does not tell you where you fall within the credit score range—as in, what is your percentile. Whereas, if you measure credit score by the medium, you know what your score is and where it is in relation to the rest of the population. In other words, the medium score tells you precisely and accurately what your score is and where you rank.
The standard FICO credit score ranges from 300-850 and is computed using a mathematical model invented by the Fair Isaac Corporation in 1956 as a vehicle to combat lending default and assess the risk of borrowers.
All three credit bureaus (Transunion, Experian, Equifax) use a slightly different version of the FICO credit scoring system. Regardless, the original FICO system is still the most widely used credit scoring system—and also the most reputable.