What Your FICO Score Mean (Is Your’s Good)

A FICO score is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit.

Fair Isaac, the makers of the FICO score, is tight-lipped about exactly how the scores are calculated. But they do give the weights of various criteria that they look at: 35% payment history, 30% amount owed, 15% length of history, 10% new credit, 10% types of credit used.

The three-digit score is basically your credit batting average — and like in baseball, the higher the number, the better. Scores are generally from 300 to 850, and if you score a 720 or above, congratulations! You are in the credit big leagues with an excellent credit score.

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