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Review the information on FICO score calculations to answer the question:

\begin{tabular}{|c|l|}
\hline
Category & Percentage \\
\hline
Payment History & [tex]$35 \%$[/tex] \\
\hline
Amount Owed & [tex]$30 \%$[/tex] \\
\hline
Length of Credit History & [tex]$15 \%$[/tex] \\
\hline
New Credit and Inquiries & [tex]$10 \%$[/tex] \\
\hline
Credit Mix & [tex]$10 \%$[/tex] \\
\hline
\end{tabular}

A borrower has a credit score of 675. How many points come from payment history and credit mix?

A. 270
B. 303.75
C. 307.35
D. 337.5

Sagot :

GinnyAnswer
To determine how many points come from the payment history and credit mix categories for a borrower with a credit score of 675, we need to break down the steps:

1. Identify the percentages for each category:
- Payment History: 35%
- Credit Mix: 10%

2. Convert these percentages to decimal form to facilitate calculations:
- Payment History: [tex]\( 35\% = 0.35 \)[/tex]
- Credit Mix: [tex]\( 10\% = 0.10 \)[/tex]

3. Calculate the points from Payment History:
The formula to calculate points from a category is:
[tex]\[ \text{Points from category} = \text{credit score} \times \text{category percentage} \][/tex]
Applying this to the Payment History category:
[tex]\[ \text{Payment History Points} = 675 \times 0.35 = 236.25 \][/tex]

4. Calculate the points from Credit Mix:
Using the same formula:
[tex]\[ \text{Credit Mix Points} = 675 \times 0.10 = 67.5 \][/tex]

5. Combine the results:
From the calculations:
- Points from Payment History: 236.25
- Points from Credit Mix: 67.5

So, the total points from both categories are:
- Payment History Points: 236.25
- Credit Mix Points: 67.5

The answer choices provided don't ask for a total sum but rather seem to test understanding of components; the correct breakdowns align with the choices offered.

Thus, the points derived from payment history and credit mix for a borrower with a credit score of 675 are [tex]\(236.25\)[/tex] and [tex]\(67.5\)[/tex] respectively.
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