Whether you’re new to credit or have been borrowing money with a credit card for years, you’ve probably seen the term FICO® Credit Score, but you may not know what it means. Knowledge of the basics of your score may help you manage your credit. Here’s what you need to know about FICO® Scores.1
What is a FICO® Credit Score?
5 min read
Last Updated: May 6, 2025
Table of contents
Key Takeaways
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FICO® Scores help lenders determine if a borrower is likely to repay their debt.
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FICO® Scores typically look at five key categories in your credit history when determining your score.
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90% of top lenders use FICO® Credit Scores,1 but there are other credit scores calculated differently.
What are FICO® Scores?
According to the Fair Isaac Corporation (FICO), your credit score is a 3-digit number based on the information on your credit report. FICO is the most common credit scoring model, but other models exist.
Your FICO® Score summarizes your credit history into a single number that lenders can use to figure out your credit risk, which is the likelihood that you’ll repay what you borrow based on your past behaviors.
Most scores fall within a 300-850 credit score range based on the information in your credit file.
Lenders consider higher FICO® Scores lower risk, and lower FICO® Scores higher risk. There’s no single minimum FICO® Score used by all lenders to qualify you for a loan, but in general, a good credit score can put you in a better position to get credit—and on better terms.
What impacts your FICO® Credit Score?
FICO calculates your credit score based on these 5 key score factors1 from your credit reports, typically broken down into the following percentages:
- 35% of your score is based on payment history.
- 30% is based on your credit utilization, your debt compared to available credit.
- 15% is based on the length of your credit history.
- 10% is based on new credit.
- 10% is based on your credit mix between installment loans and revolving credit.
The importance of these score factors may vary for different FICO® Credit Score versions.
FICO® Score versions
The most recent FICO® Score is FICO® Score 10, but many lenders continue to use previous versions, according to information from FICO.
FICO® Score 8 assesses credit utilization more heavily and may be more forgiving of a one-off late payment compared to previous versions. FICO® Score 8 includes FICO® Auto Score and FICO® Bankcard Score versions that help credit issuers make lending decisions for auto loans and credit cards.
FICO® Score 9 reduces the negative impact of medical debt and paid off third-party collections on your credit file. This version also looks at reported rental payments when calculating your FICO® Score. FICO® Score 9 also has two industry-specific versions (Auto and Bankcard) that help lenders make more informed credit granting decisions for auto loans and credit card applications.
FICO® Score 10 is the newest version of the FICO® Score. The FICO® Score 10T version looks at your payment and debt history for the previous 24-plus months to help calculate your score.
What is a FICO® Score used for?
Credit issuers use FICO® Credit Scores to determine whether to give you credit and what interest rate and terms to offer.
Did you know?
With a higher credit score, you may qualify for a wider range of credit cards with added perks, including rewards credit cards. Rewards cards from Discover may allow you to earn cash back on your everyday purchases, like gas or groceries.
Why FICO® Scores are important?
Your FICO® Scores are important because lenders use these scores to predict how likely you are to pay back your debt. These scores give an unbiased look at your credit based on your actual borrowing and payment history.
A lender, like a bank or credit card issuer, typically uses your credit score, along with other factors, to make lending decisions. Your credit score may impact several aspects of your financial life, like your credit card interest rates, mortgages, and car loans. But it’s important to note each lender may use your FICO® Score differently.
It’s possible to achieve a perfect FICO® Score of 850–in fact, almost 3 million people do. However, you don’t need a perfect score to get credit at the best terms or with the lowest interest rates.
What’s considered a good credit score may differ from one credit issuer to another. Generally, a higher score is better. Our credit score chart will give you an idea of where your FICO® Score may fall.
Credit scores may fall into the following ranges:
- Exceptional: 800 or above.
- Very Good: 744 to 799.
- Good: 670 to 739.
- Fair: 580 to 669.
- Poor: 580 or below.
FICO® Score vs. other credit scores
90% of top lenders use FICO® Credit Scores1 in their lending evaluation process, but it's just one credit scoring model. Some lenders may use different scoring models that emphasize other aspects of your credit history, like VantageScore credit score.
Why are FICO® Scores sometimes different?
It’s important to understand that a credit score is based on your credit report at that credit bureau at the time the score is requested. Your credit file may not be the same at each bureau. So, you may see a different credit score at each of the three major credit bureaus (TransUnion, Equifax, and Experian).
The bottom line
Understanding how your FICO® Credit Score works may help you make sense of changes in your credit score, alert you to possible errors on your credit record, and encourage you to think about how your borrowing behavior may impact your credit score and future applications for new credit.
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