I always assumed credit scores were an integral and historic part of the American financial system.
They were not, they are very recent，most of your parents didn’t have credit scores growing up, and as you can probably tell or at least intuit, it’s mostly just a b******* scheme for those with capital to accrue more capital by invading your privacy.
They don’t provide the exact formula, but they will provide what influences the score and their record of those factors.
That isn’t public.
It requires trust to believe that they are telling the truth about what impacts the score in a positive or negative way.
Plus they say it in the most vague way so people can’t ‘game the system’ which is not an issue if the system is fair because ‘gaming the system’ is doing the thing they want you to do. Sometimes it looks like the things they say are accurate, but other times they appear to have the opposite effect because of some interaction they aren’t telling us. Like the fact that paying off a loan too early reduces your credit score even though having fewer debts is supposed to increase it.
They are pretty precise on what to do in order to game the system.
Get credit cards that you pay off every month. Keep your first free credit cards as long as possible to boost your account age. Keep you credit card account balance as low as possible. Take out as many 0% interest loans as you can.
Total debt has never been a function of the score.
The calculation is opaque to both you and the banker but it is calculated the same way by the agency that does it.
If your credit application is rejected, they are required to show you the score and you’re entitled to free copies of your credit report data (historically you couldn’t see your data or had to pay for it). The banker can give generic advice on improving your score and point out things in your credit report them at look bad and suggest ways to finesse them, but the calculation and decision are mostly out of his hands. He doesn’t really know