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The FICO Score is the most widely used credit scoring model in the US, ranging from 300 to 850. Lenders use it to evaluate how likely you are to repay a loan on time. The ranges are: 300–579 (Poor), 580–669 (Fair), 670–739 (Good), 740–799 (Very Good), and 800–850 (Exceptional). VantageScore is an alternate model with the same 300–850 range and similar tier definitions.
Your FICO score is calculated from five factors. Payment history is the largest component at 35% — a single late payment can drop a good score by 50–100 points. Credit utilization (30%) measures how much of your available credit you're using; keeping this below 30% is the standard advice, but under 10% is better for excellent scores. Length of credit history (15%), credit mix (10%), and new inquiries (10%) round out the formula.
You can check your credit score for free through several channels. AnnualCreditReport.com is the federally mandated free report from all three bureaus (Experian, Equifax, TransUnion). Many credit cards (Discover, Capital One, Chase) now show your FICO score in the app for free. Credit Karma provides free VantageScore from TransUnion and Equifax, updated weekly.
A score above 740 typically unlocks the best interest rates on mortgages, auto loans, and credit cards. The difference between a 680 and a 760 score on a 30-year mortgage can amount to tens of thousands of dollars in total interest. A score below 620 makes it difficult to qualify for most traditional loans without a co-signer.
This is general information — consult a financial advisor for personalized guidance on managing credit and debt as part of your overall financial picture.