A FICO Score is a three-digit number, typically between 300 and 850, that lenders use to assess your creditworthiness. The higher the score, the lower the perceived risk — and the better your odds of qualifying for loans, lower interest rates, and premium credit products.
The five factors that make up your FICO Score
- Payment history (35%) — do you pay on time?
- Amounts owed / credit utilization (30%) — how much of your available credit are you using?
- Length of credit history (15%) — how long have your accounts been open?
- New credit (10%) — how many recent applications and new accounts?
- Credit mix (10%) — revolving and installment accounts together?
