Base FICO® Scores have a 300-850 score range. The higher the score, the lower the risk. But no score says whether a specific individual will be a “good” or “bad” customer.
While many lenders use FICO® Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable for a given credit product. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders use to determine your actual interest rates.
When a FICO® Score is calculated from your credit report, the credit reporting agency will also provide up to five reasons that are most heavily influencing that particular score. These reasons are usually negative, because they are the reasons why the credit score isn’t higher.
For a FICO® Score to be calculated, your credit report from the bureau for which the score is being calculated must contain enough information – and enough recent information – on which to base a credit score. Generally, that means you must have at least one account that has been open for six months or longer, and at least one account that has been reported to the credit bureau within the last six months.