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Glossary

FICO score

A FICO score is a three-digit credit score (300–850) created by the Fair Isaac Corporation that lenders use to gauge how you've handled borrowing. It is built from five weighted factors: payment history (35%), credit utilization (30%), length of history (15%), new credit (10%), and credit mix (10%).

Why it matters

FICO is used by about 90% of lenders, so it is the number that most often decides your approvals and interest rates. One payment 30+ days late can lower a FICO score by 50–120 points.

Example

With on-time payments and low balances, someone might sit in the "good" range (670–739); a single 30-day-late payment reported to the bureaus can drop that score by 50–120 points.

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Educational only — not financial advice. No guarantees.