📚 Financial Glossary⏱️ 4 min read✍️ Calculator Hub Team
A FICO score is a three-digit number between 300 and 850 that measures your credit risk, calculated by the Fair Isaac Corporation from your credit report. It's built from five weighted factors — payment history, amounts owed, credit history length, new credit, and credit mix — and it's the single number most U.S. lenders use to price your loans and cards.
The Five Factors Behind Your Score
FICO doesn't treat all credit behavior equally. Each factor carries a different weight in the final calculation:
Factor
Weight
What It Measures
Payment history
35%
On-time vs. late/missed payments
Amounts owed
30%
Credit utilization ratio
Length of history
15%
Average age of accounts
New credit
10%
Recent hard inquiries, new accounts
Credit mix
10%
Variety of loan/card types
Worked Example: The Utilization Effect
Say you have a $10,000 total credit limit across all your cards and currently carry a $6,000 balance — 60% utilization, which is considered high risk.
Before paydown: $6,000 balance / $10,000 limit = 60% utilization → score in the "fair" range (roughly 640-680)
After paying down to $1,000: 10% utilization → score can rise 40-80 points within one to two statement cycles, moving into "good" or "very good" territory
This is why utilization is the fastest lever most people have to improve their score — unlike payment history or account age, it can change dramatically within a single billing cycle.
What Your Score Range Means
800-850 (Exceptional): Best rates on everything, including mortgages and auto loans
740-799 (Very Good): Qualifies for most prime rates
670-739 (Good): Generally approved, near-average rates
580-669 (Fair): Subprime rates, may need a cosigner
Below 580 (Poor): Difficult approval, highest rates or secured products only
Score ranges and examples above are illustrative and general; actual scoring models vary by bureau, lender, and FICO version. This is not financial advice.
See How Debt Affects Your Finances
Use our Debt-to-Income Calculator to see how your balances stack up against lender expectations.
A three-digit number from 300 to 850 that summarizes how risky you look to lenders based on your credit history. Higher scores mean better loan terms and lower interest rates.
What are the five factors that make up a FICO score?
Payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Payment history and utilization together drive nearly two-thirds of your score.
What credit score is considered good?
Generally, 800-850 is exceptional, 740-799 very good, 670-739 good, 580-669 fair, and below 580 poor. Most prime-rate loans require at least 690-700.
How is FICO different from VantageScore?
Both range 300-850 and use similar data but weight factors differently. FICO dominates mortgage lending decisions; VantageScore is more common in free credit-monitoring apps.
How quickly can I raise my FICO score?
Paying down high credit card balances can raise a score within 1-2 billing cycles since utilization updates fast. Longer payment history and credit age take months to years.
Does checking my own credit score hurt it?
No. Checking your own score is a "soft inquiry" with zero impact. Only "hard inquiries" from lenders during a credit application can temporarily lower your score.