In a Nutshell
FICO® scoring versions differ from one another because each is based on a unique formula. FICO® Score 8 is widely used in lending decisions. It’s especially sensitive to high credit card utilization but is generally more forgiving of isolated late payments than previous versions. It isn’t as forgiving of paid collections as newer models though.While it’s not the newest FICO scoring model, FICO® Score 8 is still the most widely used. It’s generally consistent with newer versions but differs in several key ways.
A FICO® credit score is a three-digit number ranging from 300 to 850 (or 250 to 900 for industry-specific scores). There are multiple versions of FICO® credit scores, and each is based on a unique formula calculated from information on your credit reports.
VantageScore® is another set of popular scoring models that uses information in your credit reports to generate scores. Scores from FICO and VantageScore can help lenders assess how likely you are to repay debt. Credit Karma provides free VantageScore® 3.0 credit scores from two of the three credit bureaus: TransUnion and Equifax.
Though FICO® Score 9 debuted in 2014 and FICO® Score 10 debuted in 2020, many lenders still rely on FICO® Score 8 when making decisions. That’s why it’s important to know what goes into the FICO® Score 8 credit scoring model. Here’s a breakdown of the factors behind FICO® Score 8, as well as the differences between it and newer versions.
- What factors affect your FICO® 8 credit score?
- FICO® Score types: How FICO Score 8 differs from other models
- Do lenders use FICO® Score 8?
- Next steps: Check your credit scores
- FAQs about FICO® Score types
What factors affect your FICO® 8 credit score?
FICO credit scores depend on the information in your credit reports, so knowing what’s in those reports is a good place to start. Your credit reports contain information such as how often you make payments on time and how many credit accounts you have open.
This information directly affects your FICO® Score 8 credit scores, as well as scores using many other credit scoring models. For example, keeping your credit utilization low can help your FICO® Score 8 credit scores, while repeatedly neglecting to pay your credit card bills on time can hurt them.
Here’s a breakdown of the credit score factors that make up your FICO scores:
- Payment history (35%): Your history of paying credit accounts is a major factor in determining your FICO scores. Lenders want to know whether you’ve paid your bills on time.
- Amounts owed (30%): This factor refers to how much you owe on credit accounts, such as installment loans and credit cards, and the percentage of your available credit that you’re using (known as your credit utilization rate).
- Length of credit history (15%): FICO scores take into account how long you’ve had your oldest and your newest accounts. Also considered are the average age of all your accounts and how long it’s been since you’ve used certain accounts. Generally speaking, the longer your credit history the better.
- Credit mix (10%): FICO scores consider your mix of different credit accounts, though it’s not a key factor. These may include credit cards, mortgage loans and auto loans.
- New credit (10%): New credit applications and recently opened accounts can influence your FICO scores. That’s because they trigger a hard credit inquiry, which shows other lenders that you’re looking for credit and can temporarily lower your scores by a few points.
Comparing FICO® Score 8 and VantageScore 3.0 credit score factors
Here’s how FICO® 8 and VantageScore® 3.0 — another widely used model — weigh these credit score factors:
| Credit score factor | FICO® 8 | VantageScore® 3.0 |
|---|---|---|
| Payment history | 35% | 40% |
| Amounts owed / Credit usage (utilization) | 30% | 20% |
| Length / depth of credit history | 15% | 21% |
| Credit mix | 10% | N/A, included in credit depth |
| Balances | N/A | 11% |
| Recent credit activity | 10% | 5% |
| Available credit | N/A | 3% |
FICO score types: How FICO® Score 8 differs from other models
FICO® Score 8 is just one credit-scoring model.
On Credit Karma, for example, you can get your free VantageScore® 3.0 credit scores from TransUnion and Equifax. These scores may not match up exactly with credit scores based on the FICO® Score 8 credit scoring model, but they rely on many similar factors. For example, your credit card utilization rate is considered a high-impact factor in both the VantageScore® 3.0 and FICO® Score 8 credit scoring models.
But there are still differences to consider, such as how other models treat:
- Paid collections: Newer FICO scoring models and VantageScore® 3.0 and 4.0 models ignore all paid collections accounts. FICO® Score 8 does not unless the collection is for less than $100. This means that paying off a debt in collection won’t have as much of an immediate impact on your FICO Score 8 credit score as it would other scores.
- Medical collections: FICO® Score 9, FICO® Score 10 and VantageScore® 4.0 de-emphasize the impact of unpaid medical collections accounts.
- Rental payments: FICO® Score 9 factors rental payment history into your scores — provided your landlord reports it to at least one of the three consumer credit bureaus.
- Trended data: VantageScore® 4.0 and FICO® Score 10T look at historical trends for factors like credit utilization as part of their credit score formulas, while FICO® Score 8 only looks at your most recently reported credit utilization information.
Here are some other key similarities and differences among the most popular VantageScore® and FICO® score models.
| Credit factor | VantageScore® 3.0 | VantageScore® 4.0 | FICO® Score 8 | FICO® Score 9 | FICO® Score 10 |
|---|---|---|---|---|---|
| Utilization rate | Very important | Very important | Very important | Very important | Very important |
| Historical utilization rate and payment info (trended data) | No impact | May affect your score | No impact | No impact | May affect your score (if using FICO Score 10T) |
| Collection accounts | Ignores paid collection accounts Treats unpaid medical collection accounts like other unpaid collection accounts. | Ignores paid collection accounts Ignores unpaid medical collection accounts that are less than six months old Considers unpaid medical collection accounts of over $500 as having less than other types of collection accounts | Ignores small-dollar “nuisance” accounts that had an original balance of less than $100 Treats medical collection accounts, including those with a zero balance, like other collection accounts | Ignores paid collection accounts Ignores small-dollar “nuisance” accounts that had an original balance of less than $100 Considers unpaid medical collections of over $500 as having less of an impact than other types of collection accounts | Ignores paid collections accounts Ignores small-dollar “nuisance” accounts that had an original balance of less than $100 Considers unpaid medical collections of over $500 as having less of an impact than other types of collection accounts |
| A tax lien or judgment | No impact | No impact | No impact | No impact | No impact |
Do lenders use FICO® Score 8?
FICO® Score 8 credit scores are the most widely used FICO scores, and many lenders use them to assess credit applications.
In addition to deciding whether you’re approved for a financial product, lenders may use your FICO® Score 8 to help them determine your:
- Credit limit
- Interest rate
- Repayment period
While companies like FICO and VantageScore create the formulas, however, it’s the lenders who ultimately select which model and version to use. That’s also why a credit card issuer or auto lender might stick with whichever credit score version it’s already using even if new models have come out. And credit scores aren’t the only thing lenders use to determine whether you can borrow money. Lenders may also look at factors such as your debt-to-income ratio, employment history and income. They also may use their own proprietary scoring models.
Where to find your FICO scores
If you want to check your FICO® Score 8 for free, you’ve got several options:
- myFICO: You can sign up for a free plan under myFICO and get your FICO Score 8 credit score.
- Experian: This credit bureau can provide you with your FICO® Score 8 for free if you sign up.
- American Express MyCredit Guide: American Express will provide your FICO® Score 8 credit score even if you’re not a cardholder.
- CreditWise from Capital One: Just like with American Express, you can get your FICO® Score 8 credit score from Capital One even if you’re not a cardholder.
Next steps: Check your credit scores
If you’re shopping for a new loan or credit card, consider reaching out to your potential lender and asking which credit scoring model may be used to evaluate your credit.
The more you know about what goes on behind the scenes, the better you can try to position yourself in the eyes of a prospective lender.
Credit Karma can provide your free VantageScore® 3.0 credit scores, as well as free credit reports, from TransUnion and Equifax. By checking your scores and reports routinely, you can stay on top of your credit-building progress and know where you stand before you apply for new credit.
If you spot any errors on your credit reports, make sure to dispute them with the credit bureaus.
FAQs about FICO® Score types
FICO® Score 8 is the most widely used FICO scoring model, so it’s used to help with a variety of lending decisions. This may include approvals and lending terms for credit applications like credit cards and personal loans.
FICO® Score 8 and FICO® Score 9 are similar but differ in a few key ways. FICO® Score 9 considers unpaid medical collections to be less impactful to your credit score than other types of collections debt, for example. FICO® Score 9 also ignores all paid collections on your credit reports, while FICO® Score 8 still includes them in its calculations.
Some lenders may use FICO® Score 8 for auto loan applications, but many will likely use a version of the FICO Auto Score instead. These industry-specific scores range from 250 to 900 instead of 300 to 850 like FICO’s base versions.