Consumer Litigation Associates
“More Than Just a Number: Decoding FICO®”
Estimated Read Time
≈ 9 minutes
- FICO® Score Basics
FICO (Fair Isaac Corporation) scores are three-digit numbers, 300 to 850, designed to predict the likelihood that a borrower will become 90 days past-due within the next 24 months. Lenders rely on them because they offer a quick, standardized snapshot of credit risk drawn from the much longer—and messier—credit report.
| Range | Rating | Typical Lending Outcome |
| 800–850 | Exceptional | Best rates & terms |
| 740–799 | Very Good | Favorable terms |
| 670–739 | Good | Accept/standard |
| 580–669 | Fair | Sub-prime pricing |
| 300–579 | Poor | Likely denial |
Note: Each lender sets its own cut-offs.
- How Many FICO Scores Are There?
Contrary to the “one score” myth, dozens of FICO models circulate simultaneously. They fall into two broad families:
| Family | Examples | Primary Use |
| Base Scores | FICO 8, FICO 9, FICO 10, FICO 10 T | General-purpose credit cards & personal loans |
| Industry-Specific Scores | FICO Auto Score 2/4/5/8/9/10; FICO Bankcard Score 2/4/5/8/9/10 | Tailored weighting for auto lenders or credit-card issuers |
Mortgage underwriting is a special case: Fannie Mae and Freddie Mac still require the older “classic” versions—FICO 2 (Experian), 4 (Equifax), and 5 (TransUnion)—until their planned model update rolls out late 2026.
Why so many?
- Each new release incorporates fresh performance data and adjusts for shifts—e.g., reduced penalty for paid collections in FICO 9, trended balance data in FICO 10 T.
- Federal agencies or private lenders may “lock” a legacy model to keep results comparable year-to-year.
- Anatomy of a FICO Score
Although weights vary slightly by model, the core ingredients stay constant:
| Factor | Approx. Weight | Practical Meaning |
| Payment history | ~35 % | On-time vs. late payments |
| Amounts owed / utilization | ~30 % | Balances relative to credit limits |
| Length of credit history | ~15 % | Age of oldest account & average age |
| New credit | ~10 % | Recent inquiries & new accounts |
| Credit mix | ~10 % | Variety (installment, revolving, mortgage) |
No single factor guarantees approval; scores simply signal probability of default.
- Score vs. Report—Two Distinct Products
Your credit report is a comprehensive data file maintained by a consumer reporting agency, such as Experian, Equifax, and TransUnion. It includes information like open and closed accounts, payment records, balances, public records, and inquiries.
A FICO score is a proprietary algorithm that reads that data at the moment a lender (or you) requests it and spits out a number. Think of the report as a library, the score as a book review written for one reader on one day.
Key distinctions:
| Credit Report | FICO Score |
| Lengthy, qualitative data | Single quantitative output |
| Owned by the bureaus | Trademark of Fair Isaac Corp. |
| Consumers can dispute data | Consumers cannot “dispute” a score directly; must correct data |
| Free weekly access via AnnualCreditReport.com | Usually sold by bureaus or provided by lenders; model version may vary |
Because the score is recalculated on demand, any change to your underlying report—new balance, dispute resolution, added account—can raise or lower the next score pull, sometimes within days.
- Why Scores Matter
- Pricing: Interest rates often move in tiers (e.g., 720+, 680-719, 640-679).
- Approval Odds: Many automated underwriting systems use a minimum cut-off (e.g., 620 for conventional mortgages).
- Insurance & Utilities: Some states allow FICO-based “insurance scores.”
- Employment & Housing: Landlords and certain employers may review specialized versions.
Inaccurate information can lower your credit scores and harm you financially. Call us at (757) 930-3660 or click here for a free case review.
- Fair Isaac Corp., What Is a FICO® Score?, FICO (2024), https://www.fico.com.
- CONSUMER FIN. PROT. BUREAU, Your Credit Scores (2022), https://files.consumerfinance.gov/f/documents/cfpb_your-credit-scores_2022-05.pdf.
- Fair Isaac Corp., FICO® Score Versions: An Overview (2023), https://www.fico.com/en/products/fico-score.
- Fed. Hous. Fin. Agency, Credit Score Model and Credit Report Requirements (2024), https://www.fhfa.gov.
- Bd. of Governors of the Fed. Reserve Sys., Credit Scoring and Its Effects on the Availability of Credit (2021).
Legal Disclaimer: This blog post is for educational purposes only and does not constitute legal advice. Every case is different, and past results do not guarantee future outcomes. If you have questions about your specific situation, contact Consumer Litigation Associates for more information or assistance.
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