1. What is a FICO Credit Score?

The FICO score is the most widely used credit scoring model in the United States, ranging from 300 to 850. It helps lenders assess the credit risk of potential borrowers based on their credit history.

2. How is the Score Calculated?

The FICO score is calculated using five main components:

Where:

• Payment History (35%) - Record of on-time payments
• Credit Utilization (30%) - Amount of credit used vs available
• Credit Age (15%) - Length of credit history
• New Credit (10%) - Recent credit inquiries and accounts
• Credit Mix (10%) - Variety of credit types (cards, loans, etc.)

3. Importance of Credit Scores

Details: Your FICO score affects loan approvals, interest rates, credit limits, rental applications, and sometimes even employment opportunities. Higher scores (700+) qualify for better terms.

4. Using the Calculator

Tips: Rate each category from 0-100% based on your credit profile. For example, if you have perfect payment history, enter 100 for that category. The calculator will estimate your FICO score.

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.

Q2: How often does my FICO score update?
A: Scores update as lenders report new information, typically monthly.

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

Q4: How long do negative items stay on my report?
A: Most negative items remain for 7 years, bankruptcies for 10 years.

Q5: What's the fastest way to improve my score?
A: Pay all bills on time, reduce credit card balances below 30% utilization, and avoid opening new accounts unnecessarily.