![]() ![]() ![]() ![]() It takes into account how reliably you pay your bills on time and in full. Payment history (35%): This is the most influential factor in your score.How is a FICO score determined?Ī FICO score is calculated by pulling data from the three credit bureaus: Equifax, Experian and TransUnion. Most lenders are willing to lend to borrowers who have a “Good” FICO score.Īlthough considered below average, people with a “Fair” score may be approved for a loan by lenders, but with less favorable terms.Ī score under 580 is considerably below average and a red flag by potential lenders. The average FICO score in the US of 714 falls comfortably in this range. The FICO score range is broken up into five categories:Īn “Exceptional” FICO score is your ticket to qualify you for the best rates and loan terms.īorrowers with a “Very Good” score are assessed as low risk and above average, receiving more favorable terms. It measures, among other things, how long you’ve had credit, if you’ve paid on time and how much credit is being used. The FICO score ranges from 300 to 850 and helps lenders evaluate the financial risk of a prospective borrower. And each category will depend on your finances. Whether lenders check your FICO score or VantageScore, a good credit score can help you secure the best rates on your credit cards, loans and insurance. There’s no one-size-fits-all model for credit scores and your credit report. A FICO score is a three-digit number that’s based on five factors: payment history, amounts owed, length of credit history, new credit and credit mix. ![]()
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