The FICO Scoring Model
The dominant credit scoring standard is developed by FICO ( Fair Isaac Corporation). Under FICO models, scores range from 300 to 850, structured as follows:
- Payment History (35%): The consistent track record of settling liabilities on time. A single 30-day delinquency can cause a pristine score to drop by over 100 points.
- Amounts Owed / Credit Utilization (30%): The ratio of outstanding revolving balances to aggregate available credit.
- Length of Credit History (15%): The age of your oldest accounts and the average age of all accounts on file.
- New Credit (10%): The frequency of recent credit applications and inquiries.
- Credit Mix (10%): The diversity of your credit portfolio (e.g., mortgage, auto loan, revolving cards).
FICO scores are categorized as exceptional (800+), very good (740–799), good (670–739), fair (580–669), and poor (300–579).