FICO Scores
Understanding FICO Scores
FICO Score Definition;
A FICO Score is a three-digit number created by the Fair Isaac Corporation (FICO) that represents a consumer’s creditworthiness. Ranging from 300 to 850, it is the most commonly used credit scoring model by banks, lenders, and financial institutions to evaluate the risk of lending money or extending credit. FICO Scores are calculated using information from your credit reports, including payment history, amounts owed, length of credit history, new credit, and credit mix. A higher score indicates lower credit risk and generally results in better loan terms, lower interest rates, and higher approval odds.
Quick Links
Frequently Asked Questions:
What factors make up a FICO Score?
Payment History (35%): On-time vs. late or missed payments.
Amounts Owed (30%): Credit utilization across accounts.
Length of Credit History (15%): How long accounts have been open.
Credit Mix (10%): Variety of revolving and installment accounts.
New Credit (10%): Number of recent credit inquiries and accounts.
What is considered a good FICO Score?
Excellent: 800–850
Very Good: 740–799
Good: 670–739
Fair: 580–669
Poor: 300–579
How is a FICO Score different from VantageScore?
Both are credit scoring models, but lenders overwhelmingly rely on FICO. VantageScore is newer and used more by credit monitoring apps. Scoring criteria are similar, but calculation methods can differ.
Does checking my FICO Score hurt my credit?
No. Checking your own credit score is considered a soft inquiry and has no impact. Only hard inquiries (from lenders) can lower your score temporarily.
How often do FICO Scores update?
Scores update whenever your lenders report new information to the credit bureaus, which may be monthly or more frequently.
Can I improve my FICO Score quickly?
Paying down credit card balances to reduce utilization and making on-time payments are two of the fastest ways to boost your score.
Improving your FICO score is typically the ultimate goal of DIY Credit Repair.
