← Back to Glossary
FICO Score
Definition
A FICO score is a type of credit score created by the Fair Isaac Corporation, used by lenders to assess credit risk based on credit report data.
Explanation
FICO scores range from 300 to 850 and are the most widely used credit scores by lenders. The five components are: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit (10%). Different versions of FICO exist for different lending purposes.
A good FICO score (700+) helps you qualify for better rates and terms. Checking your own FICO score is a soft inquiry and doesn't affect your score.
Example
A 760 FICO score qualifies for the best auto loan rates (6% vs 12% for a 620 score), saving $3,600 in interest on a $30,000 loan over 5 years.