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's used by lenders to assess credit risk and determine loan approvals, interest rates, and credit limits.

2. How is the FICO Score Calculated?

The FICO Score is calculated using five main components:

Where:

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

3. Importance of FICO Score

Details: A good FICO Score (670+) can help you qualify for better interest rates, higher credit limits, and better terms on loans and credit cards. Scores below 580 are considered poor and may lead to credit denials.

4. Using the Calculator

Tips: For each category, enter your estimated percentage (0-100). The calculator will weight each component appropriately and estimate your FICO Score 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.

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 7-10 years.

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