Debt

FICO Score The most widely used credit score lenders check to gauge how likely you are to repay

Jordan Park By Jordan Park, Senior Debt Relief Editor · Updated 2026-06-09
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A FICO Score is the most widely used credit score in the U.S., ranging from 300 to 850, that predicts how likely you are to repay borrowed money. It's built from five weighted factors: payment history (35%), amounts owed and utilization (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Because payment history and utilization together drive about two-thirds of your score, paying on time and keeping balances low matter most. A score of 740 or higher is generally considered 'very good' and can help you qualify for better rates and terms. Lenders use your FICO Score when you apply for mortgages, auto loans, credit cards, and other financing, so where you fall in the range directly affects your borrowing costs.
Also Known As
FICO Credit score FICO credit score Fair Isaac score
Used in Context
  1. A mortgage lender pulls your FICO Score to decide your interest rate, so a jump above 740 could save you thousands over the loan.
  2. After paying down your credit cards, you watch your utilization drop and your FICO Score climb because amounts owed counts for 30%.
  3. When you submit a debt-relief inquiry through Dreamy Leads, matched providers may review your FICO Score range to tailor your options.
Related Terms
Debt Credit Utilization Ratio How much of your available revolving credit you're actually using, shown as a percentage Debt Hard Inquiry A credit check from a new application that can dip your score and stays on file about two years Debt FCRA (Fair Credit Reporting Act) The federal law that controls how credit bureaus collect, report, and correct your credit data Debt FDCPA (Fair Debt Collection Practices Act) Federal law that limits how third-party debt collectors can contact and treat you Debt Soft Inquiry A credit check that does not affect your score
Frequently Asked Questions

What is a good FICO Score?

FICO Scores range from 300 to 850, and a score of 740 or higher is generally considered 'very good.' Higher scores typically help you qualify for better interest rates and terms. The exact cutoff a lender treats as 'good' can vary, but landing at 740+ puts you in a strong position with most lenders.

What factor affects my FICO Score the most?

Payment history has the biggest impact, accounting for 35% of your FICO Score. Amounts owed and utilization come next at 30%. Together these two factors drive about two-thirds of your score, so paying on time and keeping balances low are the most effective ways to improve where you stand.

How is my FICO Score calculated?

Your FICO Score combines five weighted factors: payment history (35%), amounts owed and utilization (30%), length of credit history (15%), new credit (10%), and credit mix (10%). The result falls on a 300 to 850 scale. Because the weighting is fixed, focusing on the largest factors gives you the most influence over your number.

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