1. What is a FICO Score?

The FICO Score is the most widely used credit score in the United States. Lenders use it to assess credit risk and determine loan approvals and interest rates. Scores range from 300 to 850, with higher scores indicating better creditworthiness.

2. How is FICO Score Calculated?

FICO Scores are calculated using five main components:

Component Breakdown:

• Payment History (35%): Timeliness of payments
• Credit Utilization (30%): Amount of credit used vs available
• Credit Length (15%): Age of credit accounts
• Credit Mix (10%): Variety of credit types
• New Credit (10%): Recent credit inquiries/new accounts

3. Importance of FICO Score

Details: Your FICO Score affects loan approvals, interest rates, credit limits, insurance premiums, and even rental applications. Maintaining a good score (670+) can save thousands in interest over time.

4. Using the Calculator

Tips: Enter your best estimates for each category. For payment history, enter the percentage of on-time payments (e.g., 95 for 95% on-time). Credit utilization should be under 30% for best scores.

5. Frequently Asked Questions (FAQ)

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

Q2: How often should I check my score?
A: Check at least annually, and before applying for major loans.

Q3: How long do negative items affect my score?
A: Most negative items stay on your report for 7 years, but their impact lessens over time.

Q4: Does checking my own score hurt it?
A: No, checking your own score is a "soft inquiry" that doesn't affect your score.

Q5: How quickly can I improve my score?
A: Some improvements can be seen in 30-60 days (like reducing utilization), while building history takes years.