Credit Score Simulator
Interactive financial tool to estimate credit score changes based on payment history, utilization, and credit age. Simulates FICO-style algorithm logic.
About
Credit scores determine eligibility for mortgages, auto loans, and competitive interest rates. However, the exact algorithms used by bureaus are proprietary trade secrets. This simulator provides a calculated estimate based on standard weighting models used in the industry, such as FICO and VantageScore. It helps users understand the mathematical impact of financial behaviors before taking action.
The calculation relies on five distinct variables with varying degrees of influence. Payment history carries the most weight, followed by amounts owed and length of credit history. The simulator allows for the adjustment of these inputs to visualize potential outcomes. Understanding these mechanics is essential for financial planning, as a difference of 20 points can alter interest rates by 0.5% or more over the life of a loan.
Formulas
The simulator uses a weighted coefficient model to approximate the score S. The total score is the sum of five components, clamped between the standard range of 300 and 850.
Where w represents the weight and f represents the factor score:
Utilization Ratio U is calculated as:
Reference Data
| Credit Score Range | Rating Category | Typical Mortgage Rate Impact | Approval Probability (Unsecured) | Auto Loan APR Est. |
|---|---|---|---|---|
| 800 - 850 | Exceptional | Base Rate (Lowest) | 99% | 3.5% |
| 740 - 799 | Very Good | Base + 0.25% | 95% | 4.5% |
| 670 - 739 | Good | Base + 0.50% | 70% | 6.0% |
| 580 - 669 | Fair | Base + 1.50% | 40% | 10.0% |
| 300 - 579 | Poor | Likely Rejected | 10% | 18.0+% |
| No Score | Insufficient | N/A | N/A | N/A |