FICO Score

FICO^® Score summary:

• A FICO score is a particular brand of credit score.

• Your FICO score is a three-digit number calculated based on information found on your credit report.

• Many creditors and lenders use the FICO credit scoring system to evaluate your eligibility for credit. They might also rely on your score to determine what terms they are willing to offer you.  

FICO^® score definition and meaning 

The FICO score is a specific brand of credit score that was created by the Fair Isaac Corporation (FICO) in 1989. FICO Scores have three digits, with scores ranging from 300 to 850. Many, but not all, lenders use the FICO scoring system to determine whether to extend credit to consumers. 

Your FICO score is important because it can impact your access to credit. It also helps lenders decide what terms and rates you qualify for.

Achieve is not a Credit Repair Organization and does not provide, or offer, services or advice to repair, modify, or improve your credit.

Key concept: A FICO score is a brand of credit score that many lenders and creditors use to evaluate an individual’s ability to manage credit and pay back debt. 

FICO^® Score: a comprehensive breakdown 

Here’s a general breakdown of the FICO Score ranges and their meanings: 

Poor credit: 300 to 579 

Fair credit: 580 to 669

Good credit: 670 to 739

Very good credit: 740 to 799

Excellent credit: 800 to 850 

Not all lenders break down credit score ranges at exactly the same points. Each lender gets to decide for themselves what they will consider a “good” or “poor” score. 

Your history with credit accounts shows up on your credit reports, and those credit reports influence your FICO Score. 

For example, late payments can have a negative effect on your FICO Score. Low credit card balances, on the other hand, tend to have a positive effect. 

A higher FICO Score could increase your odds of approval for a loan or credit card and may help you get lower interest rates. 

FICO Scores, like all credit scores, can and do change. Sometimes quickly, sometimes slowly. You can take steps to improve your score. It’s never too late to start. 

Key components of a FICO^® Score

The following factors are considered when calculating your FICO Score:

• Payment history: Whether you pay your bills on time 

• Amounts owed: How much debt you owe and how much available credit you use

• Length of credit history: How old your credit accounts are

• New credit: Recent credit applications and newly opened credit accounts 

• Credit mix: The types of credit you use