A FICO score is calculated by a system of scorecards. In developing these scorecards, FICO uses actual data on millions of consumers, and applies complex mathematical methods to perform extensive research into credit patterns that forecast credit performance. Through this process, FICO identifies distinctive credit pattens. Each pattern corresponds to a likelihood that a consumer will make future loan payments as agreed. The score is based on all the credit related data in the credit bureau report, not just the negative data such as missed payments, collections, or bankruptcies.
Credit bureau scoring is a statistical means of assessing how likely a borrower is to pay back a loan. Credit scores range from approximately 350-850 points. The higher the credit score, the more likely you will qualify for a loan.