A FICO score is a three-digit number that lenders use to decide whether to lend you money and what interest rate to charge

FICO stands for Fair Isaac and Company, the firm that created the scoring model in 1989. Your FICO score ranges from 300 to 850. The higher your score, the less risky you look to a lender. Banks, credit card companies, mortgage lenders, and auto lenders all use FICO scores to make lending decisions. Some landlords and employers also check FICO scores, though the rules around that differ by state.

You do not have one FICO score — you have several. The three major credit bureaus (Equifax, Experian, and TransUnion) each calculate their own FICO score based on the information they hold about you. These scores can differ because each bureau may have different records. FICO also produces different versions of its score for different industries: a mortgage lender sees a different score than an auto lender does, because the model weights recent payment history differently depending on the loan type.

Key Takeaways

  • FICO scores range from 300 to 850, and lenders use them to decide whether to lend money and at what interest rate.
  • Your score comes from five categories: payment history (35 percent), amounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent), and new credit inquiries (10 percent).
  • You have multiple FICO scores because each credit bureau calculates one independently, and different lenders use different versions of the score.
  • Checking your own score does not hurt it, but when a lender checks your score as part of a lending decision, that inquiry can lower your score slightly.

The five factors that make up your FICO score

Payment history is the largest piece of your score at 35 percent. This means whether you pay your bills on time matters most. A single late payment can lower your score, and the later the payment, the bigger the damage. A payment 30 days late hurts less than one 90 days late. Payments that go to collections or result in a judgment damage your score severely and stay on your record for years.

Amounts owed makes up 30 percent of your score. This is not just your total debt — it is how much of your available credit you are using. If you have a credit card with a $5,000 limit and a $4,500 balance, you are using 90 percent of that limit. Using more than 30 percent of your available credit on any single card can lower your score, even if you pay on time. The model assumes high utilization means you are financially stretched.

Length of credit history accounts for 15 percent. This includes how long your oldest account has been open and the average age of all your accounts. Closing old accounts can lower this number. Keeping old accounts open, even if you do not use them, helps your score.

Credit mix is 10 percent of your score. This means having different types of credit — a credit card, an auto loan, a mortgage — looks better than having only credit cards. The model assumes you can handle different kinds of debt responsibly.

New credit inquiries make up the final 10 percent. When you apply for a loan or credit card, the lender checks your credit. That check, called a hard inquiry, can lower your score by a few points. Multiple hard inquiries in a short time can add up. Checking your own score is a soft inquiry and does not affect it.

What counts as a good FICO score

FICO does not publish official score ranges, but lenders have adopted these general benchmarks: 300–579 is poor, 580–669 is fair, 670–739 is good, 740–799 is very good, and 800–850 is excellent. Where you fall in these ranges affects what you can borrow and at what cost.

With a score below 580, most traditional lenders will not lend to you, or will charge you a much higher interest rate. With a score of 580–669, you may get a loan but at a higher rate than someone with a better score. A score of 670 and above opens access to standard lending terms. A score above 740 usually qualifies you for the best rates available.

The score that matters to a lender depends on the loan type. A mortgage lender may require a minimum score of 620, while a credit card issuer might approve someone with a 600 score. Auto lenders often work with lower scores than mortgage lenders do.

How FICO scores differ from other credit scores

FICO is not the only credit scoring model. VantageScore is another widely used model, created jointly by the three credit bureaus. VantageScore ranges from 300 to 850 like FICO, but weights the factors differently. VantageScore puts payment history at 35 percent like FICO, but gives more weight to recent credit activity and less to length of history.

Some lenders use their own proprietary scores based on FICO or VantageScore data but adjusted for their specific business. A mortgage lender might use a version that weights payment history on mortgage accounts more heavily than credit card history. An auto lender might do the opposite.

The difference matters because your FICO score and your VantageScore can differ by 50 points or more. A lender who uses VantageScore may approve you when a FICO-based lender would not. When you check your score through a free service, you are often seeing a VantageScore, not a FICO score. Lenders typically use FICO.

Where to see your FICO score

You can order your FICO score directly from myfico.com, the official FICO website. You pay for this — the cost varies but is usually between $15 and $25 for a single score. Some credit card companies and banks show your FICO score for free in your online account or app, though not all do.

Free credit monitoring services usually show you a VantageScore, not a FICO score. Websites like Credit Karma, AnnualCreditReport.com, and Credit Sesame display free scores, but these are typically VantageScore versions. That does not make them useless — they move in the same direction as your FICO score — but they are not what most lenders see.

You can also see your credit report for free once per year from each bureau at AnnualCreditReport.com. Your credit report shows the accounts, payments, and inquiries that go into your score, but it does not show the score itself. Checking your own report does not hurt your score.

How to improve your FICO score

The fastest way to improve your score is to bring any late payments current. If you have accounts 30, 60, or 90 days past due, paying them now stops further damage and begins the recovery process. Late payments stay on your report for seven years, but their impact fades over time.

Lowering your credit card balances also helps quickly. If you have high utilization on any card, paying down that balance to below 30 percent of the limit can raise your score within a billing cycle or two. You do not have to pay off the card entirely — just lower the reported balance.

Do not close old credit cards after paying them off. Closing an account lowers your average account age and reduces your total available credit, both of which can lower your score. Keep the account open and use it occasionally to keep it active.

Avoid applying for multiple new credit accounts in a short time. Each application triggers a hard inquiry that lowers your score slightly. If you need to apply for multiple loans (like a mortgage and an auto loan), try to do it within a two-week window — most lenders treat multiple inquiries in that window as a single inquiry.

Frequently Asked Questions

Does checking my own credit score hurt it?

No. When you check your own score, it is a soft inquiry and does not affect your FICO score. Only hard inquiries — when a lender checks your score as part of a lending decision — lower your score. You can check your score as often as you want without penalty.

Can I have different FICO scores from different bureaus?

Yes. Each of the three credit bureaus (Equifax, Experian, and TransUnion) maintains its own records and calculates its own FICO score. If one bureau has incomplete or inaccurate information about you, your score with that bureau will differ from the others. Lenders may check one bureau or all three.

How long does a late payment stay on my credit report?

A late payment stays on your credit report for seven years from the date it was first reported as late. However, the impact on your score decreases over time. A late payment from two years ago hurts your score less than one from two months ago. After seven years, it falls off your report entirely.

What is the difference between a hard inquiry and a soft inquiry?

A hard inquiry happens when you apply for credit and a lender checks your score to make a lending decision. It lowers your score slightly. A soft inquiry happens when you check your own score, when an employer checks it, or when a company does a pre-approval check. Soft inquiries do not affect your score.

If I pay off a collection account, does my score go back up immediately?

Paying a collection account stops it from getting worse, but the account stays on your report for seven years and continues to affect your score. Your score may improve slightly after payment, but the improvement is usually modest. The account's impact fades over time, but it does not disappear when you pay it.