What It Means
A FICO Score is a credit score created by Fair Isaac Corporation (now known as FICO) that is used by approximately 90% of top U.S. lenders. FICO scores range from 300 to 850 and are calculated using five factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). There are multiple FICO scoring versions (FICO 8, FICO 9, FICO 10), and industry-specific versions for auto lending and credit cards. FICO 8 is currently the most widely used version. Understanding your FICO score and the factors that influence it is essential for managing your credit effectively.
Frequently Asked Questions
Is FICO the same as a credit score?
FICO is one type of credit score - the most common one. VantageScore is another major scoring model. When people say 'credit score,' they usually mean their FICO score.
Which FICO score version do lenders use?
FICO 8 is the most commonly used version. However, mortgage lenders often use older versions (FICO 2, 4, and 5), and auto lenders may use FICO Auto Score.