Your FICO®credit score is calculated based on a number of factors, including the amount of debt you already owe, your payment record and the length of your credit history. Your credit score can affect your ability to take out loans, rent or buy a home. It's important to maintain a good credit score.
What are FICO® Scores?
FICO® Scores are numbers that summarize your credit risk. Scores are based on a snapshot of your credit file at particular consumer reporting agency at a particular point in time and help lenders evaluate your credit risk.
How are FICO® Scores calculated?
FICO® Scores are calculated from many different pieces of credit data in your credit report. This data is grouped into five categories as outlined below. The percentages below reflect how important each category is in determining how FICO® Scores are calculated:
- 35% - Payment History
- 30% - Outstanding Debt
- 15% - Length of Credit History
- 10% - New Credit
- 10% - Credit Mix
Is a FICO® Score the Same as a Credit Score?As with all credit risk scores, FICO® Scores predict the likelihood that someone will fall 90 days behind on a bill within the next 24 months. FICO® does this using complex algorithms based on information in your credit report from each of the national credit bureaus: Experian, TransUnion and Equifax.
Why Do I Have Different FICO® Scores?
FICO® creates different FICO® Score models to work with each credit bureau's credit reports. And, FICO® periodically releases new FICO® Score models to incorporate changing consumer behavior, new regulations and technological advances. Because not all lenders and businesses use the same scoring models or versions, you may have several credit scores.
What Is a Good Credit Score?
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2020, the average FICO® Score in the U.S. reached 710—an increase of seven points from the previous year. Higher scores can make creditors more confident that you will repay your future debts as agreed.
FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
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