FICO® Score
FICO Score Summary:
A FICO® Score is a three-digit credit score, calculated using a scoring formula created by the Fair Isaac Corporation.
FICO Scores are commonly used by lenders to decide whether you're a good credit risk.
FICO Scores range from 300 to 850 and are based on your payment history, types of credit, age of credit, credit used versus credit available, and requests for new credit.
FICO® Score Definition and Meaning
Your FICO Score is a type of credit score that is calculated using a formula created by the Fair Isaac Corporation. It's just one of many types of credit scores you may have, as there are many different credit scoring formulas.
Your FICO Score ranges from 300 to 850 and higher scores are better. A higher score means (statistically) that you’re more likely to fully repay your debts. Many lenders use FICO Scores when deciding whether to give you a loan and what rate to charge you to borrow.
Key Attributes of Your FICO® Score
Several factors are used to determine your FICO Score. Under the scoring formula, here's how your score is calculated:
Payment history accounts for 35% of your FICO Score.
Amounts owed makes up 30% of the scoring formula. The most influential factor in this category is how close your credit card balance is to your credit limit (credit utilization ratio).
Length of credit history makes up 15% of your score.
New credit accounts for 10% of your score under the FICO formula.
Inquiries, or requests for new credit, make up the remaining 10%.
Three major credit reporting agencies—Equifax, Experian, and TransUnion—collect this data about you. The FICO scoring formula is then applied to the data on your credit record to assign you a three-digit score that tells lenders your credit risk.
FICO® Score Comprehensive Breakdown
Approximately 90% of top lenders use the FICO scoring formula to evaluate your creditworthiness. When you apply for a credit card, personal loan, mortgage, or other type of debt, you'll provide your Social Security number. This is used to check your credit history and obtain your credit score.
Every lender decides what they consider to be a good or bad FICO Score. But the ranges generally break down like this:
Poor if your score is below 580
Fair if your score is between 580 and 669
Good if your score is between 670 and 739
Very Good if your score is between 740 and 799
Exceptional if your score is 800 or higher
Most lenders prefer you have a FICO Score of at least 620 to 660. You’ll probably need a 740 or higher to get the very best deals on loans and credit cards.
FICO® Score FAQs
What is the lowest FICO Score?
The FICO scoring scale goes as low as 300. If you want your score to be in the "good" range, however, you will likely need a minimum FICO Score of 670.
What is a FICO Score range?
FICO Scores range between 300 and 850, but there are individual descriptions for different score ranges within those limits. For example, scores between 300 and 850 are considered poor, while scores between 580 and 669 are classified as fair. If your score is between 670 and 739, you have a good score, and your score is very good if it's between 740 and 799. Finally, those with scores above 800 are considered to have excellent credit.
Is a FICO Score the same as a credit score?
A FICO Score is one type of credit score, calculated using a formula pioneered by the Fair Isaac Corporation. There are other types of credit scores as well, including VantageScores. Many lenders use the FICO scoring formula because it is a very long-standing and well-established formula.
Related Articles
What is a good credit score? Generally speaking, a high 600s or above score is considered a good credit score, but it depends on the lender and industry.
Is your FICO score the same as your credit score? What other credit scores are there? Learn about FICO score, VantageScore and other credit scores.
Credit utilization ratio is a key factor in credit scores, so lowering that ratio could help you improve your credit score. Here’s how to get started.
What is a good credit score? Generally speaking, a high 600s or above score is considered a good credit score, but it depends on the lender and industry.
Is your FICO score the same as your credit score? What other credit scores are there? Learn about FICO score, VantageScore and other credit scores.
Credit utilization ratio is a key factor in credit scores, so lowering that ratio could help you improve your credit score. Here’s how to get started.