SmartRateToolsDefinition
A FICO Score is a type of credit score created by Fair Isaac Corporation. Many lenders use it to evaluate your credit risk when deciding whether to approve loans or credit cards.
Common score ranges
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Exceptional
Main factors that affect FICO Scores
- Payment history
- Credit utilization (balances vs limits)
- Length of credit history
- New credit inquiries
- Credit mix
Why it matters
Higher scores usually qualify for better interest rates and terms. Even a modest score improvement can reduce borrowing costs over time.