FICO Score
Definition
The most widely used credit scoring model developed by the Fair Isaac Corporation, ranging from 300 to 850.
The FICO Score is a credit score model created by the Fair Isaac Corporation that is used by approximately 90% of top U.S. lenders when making credit decisions. FICO Scores range from 300 to 850, with higher scores indicating better creditworthiness.
The FICO model weighs five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Different versions of the FICO score exist for different purposes, such as FICO Auto Score for car loans and FICO Bankcard Score for credit cards.
A FICO Score of 670 or above is generally considered good, while 740 and above is considered very good to exceptional. The difference between a good and excellent score can mean thousands of dollars in interest savings over the life of a mortgage or auto loan. Regularly checking your FICO Score helps you track progress and catch errors early.
Related Calculators
Related Terms
Credit Score
financeA numerical rating between 300 and 850 that represents a person's creditworthiness, based on their credit history and financial behavior.
Debt-to-Income Ratio (DTI)
financeThe percentage of your gross monthly income that goes toward paying monthly debt obligations, used by lenders to assess borrowing capacity.
APR (Annual Percentage Rate)
financeThe yearly cost of borrowing money expressed as a percentage, including fees and interest charges.
Interest Rate
financeThe percentage charged by a lender on borrowed money or paid to a saver on deposited funds, expressed as an annual percentage.
Related Articles
How to Calculate Mortgage Payments: Complete Guide
Learn how to calculate your monthly mortgage payment with the amortization formula. Includes examples, tips for getting lower rates, and a free calculator.
Compound Interest Explained: How Your Money Grows Exponentially
Understand compound interest and how it makes your money grow exponentially. Learn the formula, see real examples, and discover strategies to maximize compound growth.
How to Pay Off Debt Fast: Snowball vs Avalanche Method
Learn the two proven strategies to pay off debt fast. Compare the debt snowball and debt avalanche methods with real examples and find which approach works best for you.
How to Calculate Net Worth: Assets, Liabilities & Benchmarks
Learn how to calculate your net worth step by step. Discover what to include as assets and liabilities, and see how your net worth compares to others your age.