Breaking Down Santa's Credit Score

NEW YORK (sbup) — You’d think with 7 billion people around the globe, Santa Claus would have other matters on his mind than his credit score.

But metaphorically, at least, Old St. Nick isn’t so busy that he can’t keep a top credit score of 777, according to the consumer credit website,

Credit Sesame offers an amusing but highly instructive tutorial on Santa’s credit score, and it might be a good idea to put down the eggnog and see how the North Pole’s most famous resident earned his stellar credit rating.

Here’s how the site breaks it all down:

Longevity helps: Being centuries old, Santa – who dates back to 4th century Turkey – gets a big boost from having a long credit history. The longer a consumer borrows money (and pays it back), the higher the credit score. Credit Sesame says length of credit history accounts for about 15% of consumer credit score criteria.

Payment history: As someone who makes good on the promise of delivering gifts to kids all over the world in a single night, Santa has the bona fides, Credit Sesame believes, to warrant a high credit score. “Santa’s payment history is likely very good,” the site says. “We’ll let his track record of delivering gifts to millions of children around the world on time each Christmas season to speak for itself.” The company says payment history is a huge component of a consumer’s overall credit score, at 35%.

Amount of money owed: Noting that here are about 7 billion people on the planet, Credit Sesame supposes that Santa spends, on average, $25 on each person. That means it costs him $175 billion to bring gifts to everyone on Earth each year. Add in the debt in feeding and caring for his reindeer and meeting his elf payroll and Santa Claus has certainly accumulated a lot of debt. But he has an out the rest of us don’t have. “Luckily,” says Credit Sesame, “Santa’s magic lets him create as much cash as he needs. Therefore, he owes little or no debt.” The website says that “amount owed” makes up 30% of a consumer’s total credit score.

New credit: Santa gets dinged because he doesn’t take out a lot of new credit, which is 10% of a consumers credit score. The less new credit you have on your hands, the lower the credit score, the site says.

Types of credit: “Santa’s mix of credit isn’t very good,” Credit Sesame says. “He paid off his mortgage and toy factory 500 years ago. That means he only enjoyed the benefits of having it contribute to his mix of credit for close to a decade.” The firm says “types of credit,” including credit cards, car loans and mortgage loans, among other items, accounts for 10% of a consumer’s total credit score.

Aside from a lack of new credit and not enough “mixed” credit, Santa Claus earns high marks for his credit history.

That’s one less thing St. Nick has to worry about before packing his sleigh on Christmas Eve – and it’s a good lesson for consumers all over the world looking to boost their credit score this holiday season, as well.

—For more ways to save, spend, invest and borrow, visit

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