What is Your FICO Score & Why Does It Matter?

If you’re applying for credit or a loan, one of the first things most lenders will look at is your FICO credit score. Your FICO score is a number between 300 and 850, and it’s used by lenders to predict how likely you are to pay back a loan on time. Each lender looks at FICO differently, but generally, a higher score could help you qualify for a loan or get a lower interest rate on student loans, mortgages, or other lines of credit.

Your FICO score is calculated using five main criteria: payment history, amounts owed, length of credit history, new credit accounts, and mix of credit types. Depending on the lender or product, each may be weighted differently to determine your borrowing potential.

Remember, a FICO score is dynamic and can change based on your habits—so it’s never too late to improve. Monitor your FICO score at myfico.com.