FICO Score
The credit scoring model developed by Fair Isaac Corporation, the most widely used by lenders to evaluate consumer creditworthiness.
FICO Score is a specific credit scoring model developed by Fair Isaac Corporation that produces a score between 300 and 850 based on information in a consumer's credit report. It is the dominant credit scoring system in the United States, used by approximately 90% of top lenders when making credit decisions for mortgages, auto loans, credit cards, and personal loans.
FICO has developed multiple score versions and industry-specific variants: FICO Score 8 is the most commonly used general model; FICO Score 9 and 10 are newer versions with improved predictive power; FICO Auto Score 8 and FICO Bankcard Score 8 are industry-specific versions tailored for auto lending and credit card underwriting respectively. Mortgage lenders commonly use older versions (FICO Score 2, 4, and 5) which will transition to FICO Score 10T under Fannie Mae/Freddie Mac requirements.
The five FICO factors and their weights: Payment History (35%) — whether you've paid past credit accounts on time; Amounts Owed (30%) — how much you owe relative to credit limits (credit utilization); Length of Credit History (15%) — how long your accounts have been open; Credit Mix (10%) — whether you have a variety of credit types; New Credit (10%) — recent applications for new credit.
Because each bureau (Equifax, Experian, TransUnion) may have slightly different information, FICO generates three separate scores — one from each bureau's data. Lenders often use the middle score of the three when evaluating applications.
FICO periodically updates its models to improve default prediction accuracy. Newer models (FICO 9, 10, 10T) include trended data (how balances have changed over time), treat medical collections less harshly, and exclude paid collections from score calculations — generally more favorable than earlier versions.
FICO scores are distinct from VantageScore, a competing model developed by the three credit bureaus jointly, though both use the 300–850 scale and similar factor weighting.
FAQs
What is the difference between FICO Score and VantageScore?
Both use the 300–850 scale and similar factors, but calculate scores differently. FICO requires at least 6 months of credit history and at least one account active in the past 6 months to generate a score. VantageScore can score with 1 month of history. FICO is used by 90% of lending decisions; VantageScore is used by some banks and is commonly shown by free credit monitoring services.
Why might I have different FICO scores from different bureaus?
Each bureau maintains its own independent credit file, and not all creditors report to all three bureaus. Discrepancies in account information, payment dates, or balances across bureaus produce different scores. Additionally, lenders may request different FICO model versions from different bureaus. Check all three bureau reports annually for discrepancies and errors.
What FICO score is needed to buy a house?
Conventional loans (Fannie/Freddie) typically require a minimum 620 FICO; some lenders prefer 640+. FHA loans allow as low as 500 (with 10% down) or 580 (with 3.5% down). VA and USDA loans have no official minimum but lenders typically require 620+. For the best rates on a 30-year mortgage, aim for 760+, which qualifies you for the lowest available rate tier.
Related Terms
Credit Score
A numerical rating (300–850) representing an individual's creditworthiness based on their credit history and behavior.
Debt-to-Income Ratio
A personal finance metric comparing monthly debt payments to gross monthly income, used by lenders to assess borrowing capacity.
Net Worth
The total value of all assets minus all liabilities, representing an individual's or company's overall financial position.
