A FICO score is a snapshot of your credit risk picture at a particular point in time. The higher your score, the lower the risk to lenders. Co mpany, which develops the mathematical formulas used to produce these scores. Every FICO score is calculated at a credit reporting agency using a mathematical formula that evaluates many types of information on your credit report at that agency. By comparing your information to the patterns in millions of past credit reports, the score identifies your level of future credit risk.
FICO scores consider five main kinds of credit information.
Payment history Amount owed Length of credit history New credit Types of credit in use For more information, see Understanding your credit score . FICO scores range from 300 to 850. The higher the score, the lower the predicted credit risk for lenders. FICO scores provide an extremely valuable guide to future risk based solely on credit report data. The higher the consumer's score, the lower the risk to lenders when extending new credit to that consumer.