Final answer:
The FICO score calculation includes payment history, credit utilization, and length of credit history but does not include annual income. the FICO score is used for making fair credit decisions based on credit history and does not consider personal information or demographics.
Step-by-step explanation:
The FICO score calculation includes a variety of factors that assess your credit risk but annual income is not one of them. The elements that are considered in your FICO score are:
- Payment history - your record of paying debts on time.
- Credit utilization - how much of your available credit you are using.
- Length of credit history - how long you have had credit accounts.
It is important to recognize that your FICO score is based on credit-related factors and does not include personal information such as race, gender, religion, or annual income. the aim is to provide a fair credit decision based solely on your credit history and behavior. consequently, making a credit decision based on a FICO score focuses on quantitative data from your past and current credit performance.Remember, if you have made mistakes in the past a bad credit score will not affect you indefinitely. Over time, with consistent responsible financial behavior, your FICO score can improve.