1. What is a FICO Score?

The FICO Score is the most widely used credit score in the United States, ranging from 300 to 850. It helps lenders assess credit risk and determines loan approvals, interest rates, and credit limits.

2. How is FICO Score Calculated?

FICO Scores are calculated using five weighted components:

Component Details:

• Payment History (35%): Record of on-time payments and delinquencies
• Credit Utilization (30%): Ratio of current revolving debt to total available credit
• Length of Credit History (15%): Age of oldest account and average age of all accounts
• New Credit (10%): Recent credit inquiries and newly opened accounts
• Credit Mix (10%): Variety of credit types (credit cards, mortgages, loans, etc.)

3. Importance of FICO Score

Impact: Your FICO Score affects loan approvals, interest rates, credit card offers, insurance premiums, and even some employment opportunities. Higher scores (700+) qualify for better terms.

4. Using the Calculator

Instructions: Enter estimated percentages (0-100) for each category based on your credit profile. The calculator will estimate your FICO Score (300-850 range).

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good FICO Score?
A: 670-739 is good, 740-799 is very good, and 800+ is exceptional. Below 580 is poor.

Q2: How often does my FICO Score change?
A: It can change whenever your credit report data changes, typically monthly as creditors report.

Q3: Does checking my score lower it?
A: Checking your own score is a "soft inquiry" and doesn't affect it. Lender "hard inquiries" may lower it slightly.

Q4: How can I improve my FICO Score?
A: Pay bills on time, keep credit utilization below 30%, maintain old accounts, and limit new credit applications.

Q5: Why are my FICO Scores different between bureaus?
A: Lenders may report to different bureaus at different times, and bureaus may have slightly different data.