Everything You Need To Know About FICO® Scores

What is a FICO® Score?

A FICO® Score determines the available credit, as well as the guidelines with which credit is given, such as interest rates. It helps the lender determine the risk involved with lending you money. FICO® Scores are calculated from the credit reports from specific agencies. FICO® uses this information to approximate and determine the risk of future credit. 

What is a good FICO® Score?

FICO® Scores can range from 300 to 850, with the higher end of the spectrum indicating lower credit risk, although a score on the lower end of the spectrum does not necessarily imply that the individual would be a poor customer. Lenders can have variable “standards” regarding the level of risk, but they also take into account other factors.

What is the reasoning behind FICO® Scores?

FICO®  uses five elements to calculate your credit score. These are: 

  • Payments history
  • Amounts owed
  • Length of credit history
  • New credit
  • Types of credit


What is the minimum needed to calculate a FICO® Score?

To calculate a FICO® Score, there must be a decent amount of information and recent information to base the score upon. For the most part, this entails having an account reported to the credit bureau within at least half a year, and having an account open for a minimum of half a year.

Will my FICO® Score change?

Yes. It is important to keep in mind that FICO® Scores can and will change given time.

Featured Image: Flickr/ Simon Cunningham CC by

Posted on May 22, 2023