What is a FICO score?
A FICO score is a three-digit number between 300 and 850 that estimates how likely you are to repay borrowed money on time. The score was created in 1989 by Fair Isaac Corporation (FICO) and is now used by 90% of U.S. lenders — including every credit card issuer covered on Hirezaa — to make lending decisions.
Your FICO score is calculated separately by each of the three major credit bureaus — Equifax, Experian, and TransUnion — using the same FICO model but slightly different data (since not every lender reports to all three bureaus). When an issuer pulls your FICO, they typically pull from one of these three bureaus, not all three.
How is FICO calculated? The 5 factors
FICO uses five weighted factors to calculate your score:
- Payment history (35%) — Have you paid past credit accounts on time? Late payments, collections, and bankruptcies have the biggest negative impact.
- Amounts owed (30%) — How much of your available credit are you using? This is called credit utilization. Lower is better; under 30% is widely recommended, under 10% is ideal.
- Length of credit history (15%) — How long have your credit accounts been open? Older average age helps.
- New credit (10%) — How many new accounts have you opened recently? Multiple hard inquiries in a short window lower your score.
- Credit mix (10%) — Do you have a mix of credit types (credit cards, installment loans, mortgages)? A diverse mix helps slightly.
FICO score ranges
FICO scores fall into five tiers that lenders use to evaluate applications:
| FICO range | Tier | What it means for credit cards |
|---|---|---|
| 800–850 | Exceptional | Approved for any card; best rates and limits. |
| 740–799 | Very Good | Approved for premium cards (Cap-One Venture X, Amex Gold). |
| 670–739 | Good | Approved for most rewards cards (Bilt Mastercard, Wells Fargo Active Cash, Capital One Quicksilver). |
| 580–669 | Fair | Limited approvals for prime cards; consider Mission Lane Visa. |
| 300–579 | Poor | Indigo, Milestone, or secured cards typically required. |
How to check your FICO score
You can check your FICO score for free through:
- Your credit card issuer — Discover, Capital One, American Express, Wells Fargo, and most major issuers provide free monthly FICO scores to cardholders.
- Experian directly — Experian offers a free FICO score at experian.com with no credit card required.
- FICO directly — myfico.com offers a free FICO 8 score sample, with paid plans for ongoing monitoring across all three bureaus.
How to improve your FICO
Three high-leverage actions move FICO scores the most:
- Pay every bill on time. This is 35% of your score. One 30-days-late payment can drop your FICO 50–100 points and stays on your report for 7 years.
- Keep utilization under 30%. If your credit limit is $1,000, keep your balance under $300. Below 10% is even better.
- Do not close old accounts. Closing your oldest card lowers your average account age and shrinks total available credit (raising utilization).
FICO vs. VantageScore
VantageScore is a competing credit score created by the three bureaus in 2006. The score range is the same (300–850), and the factors overlap heavily, but the weights differ. Most credit card issuers use FICO; some loan applications (and free credit monitoring apps like Credit Karma) show VantageScore instead. When you apply for a credit card, the issuer almost always uses FICO.
Why FICO matters for credit cards
If you are starting from a 580–669 fair-credit range, see our Best Credit Cards for Bad Credit guide for cards that accept your profile.
- Approval or decline — Each issuer has minimum FICO thresholds (e.g., Capital One Venture X typically requires 740+, Bilt and Active Cash 670+).
- Credit limit — Higher FICO scores typically receive higher limits at approval.
- Interest rate (APR) — Most card APRs are tiered by FICO. A 740+ profile gets the floor of the issuer's range; a 580 profile gets the ceiling.