# How credit scores work: FICO score ranges and what moves them

> FICO scores run 300–850; 670+ is good and 740+ gets the best rates. The 5 factors and their weights, how to check free, fix errors and raise your score fast.

- URL: https://2search.in/knowledge/articles/oct-26/how-credit-scores-work-fico
- Genre: Personal finance
- Country: United States
- Published: 2026-10-27
- Updated: 2026-10-27
- Publisher: 2search (https://2search.in)

> **Quick answer:** A **FICO score** runs from **300 to 850**. **670–739** is "good", **740–799** "very good" and **800+** "exceptional". It's built from five things in your credit report: **payment history (35%)**, **amounts owed / utilization (30%)**, **length of history (15%)**, **new credit (10%)** and **credit mix (10%)**. The fastest ways to raise it: **never miss a payment**, keep card balances **under 30% — ideally under 10% — of your limits**, and **dispute errors** on your free reports at AnnualCreditReport.com.

> **Key takeaways**
> - The average US FICO score was **714** in 2026.
> - **One 30-day late payment** can cost a good score dozens of points and stays on your report for **7 years**.
> - **Utilization** is the quickest lever — paying balances down can lift your score within one billing cycle.
> - Checking your own score **never hurts it**. Hard inquiries from applications cost a few points for about a year.
> - You can get **free weekly reports** from Equifax, Experian and TransUnion at AnnualCreditReport.com.

Your credit score affects the interest rate on a mortgage, car loan or credit card — and sometimes apartment applications, insurance prices and security deposits. Here's exactly how FICO scores work, what really moves them, and a practical plan to improve yours.



![How credit scores work: FICO score ranges and what moves them Breakdown & Visual Guide](/images/articles/how-credit-scores-work-fico/diagram.svg)

## FICO score ranges

| Score | Rating | What it usually means |
| --- | --- | --- |
| 800–850 | Exceptional | Best rates, easy approvals |
| 740–799 | Very good | Near-best rates on most loans |
| 670–739 | Good | Approved by most lenders; average US score sits here |
| 580–669 | Fair | Approvals possible, higher rates |
| 300–579 | Poor | Hard to get unsecured credit; may need a secured card |

> **Example:** On a **$400,000, 30-year mortgage**, the difference between a rate of 6.5% and 7.25% — the kind of gap between a 760 and a 640 score — is about **$200 a month**, or roughly **$72,000** over the life of the loan.

## The 5 factors in a FICO score

| Factor | Weight | What helps | What hurts |
| --- | --- | --- | --- |
| **Payment history** | 35% | Paying every bill on time | Late payments (30+ days), collections, bankruptcies |
| **Amounts owed** | 30% | Low balances vs limits (low utilization) | Maxed-out cards, high balances on many accounts |
| **Length of credit history** | 15% | Old accounts, long average age | Opening lots of new accounts, closing your oldest card |
| **New credit** | 10% | Few, spaced-out applications | Many hard inquiries in a short time |
| **Credit mix** | 10% | A mix of cards and instalment loans | Only one type (a minor factor) |

## Payment history: the big one

- Payments are reported late once they're **30 days past due**. A payment that's a few days late usually only costs a late fee.
- Late payments stay on your report for **7 years**, but their effect fades with time.
- **Collections, charge-offs and bankruptcies** hurt the most.

> **Tip:** Set **autopay for at least the minimum** on every card and loan. You can still pay the full balance manually — autopay just makes sure you're never reported late.

## Credit utilization: the fastest lever

Utilization = **card balances ÷ card limits**, both overall and per card.

> **Example:** You have two cards with limits of $5,000 and $10,000 ($15,000 total) and balances of $3,000 and $1,500. Your overall utilization is **$4,500 ÷ $15,000 = 30%**. Paying the balances down to $750 total drops it to **5%** — and your score can rise as soon as the new balances are reported.

Tips:
- Under **30%** is fine; under **10%** is where the top scores sit.
- The balance reported is usually the one on your **statement date**. Pay before it to report a lower balance.
- Ask for a **credit limit increase** on a card you've had for a while (often a soft pull).
- Don't close old, no-fee cards — that **reduces your total limit** and raises utilization.

## Length of history, new credit and mix

- **Average age of accounts** grows slowly. Keep your oldest cards open and use them now and then so they're not closed for inactivity.
- **Hard inquiries** (from applications) cost a few points and count for **12 months** (they stay on the report for 2 years).
- **Rate shopping** for a mortgage, auto or student loan within a short window (typically **14–45 days**) counts as **one** inquiry.
- **Credit mix** matters least — don't take out a loan just to "improve your mix".

## FICO vs VantageScore

| | FICO | VantageScore |
| --- | --- | --- |
| Range | 300–850 | 300–850 |
| Used by | About 90% of top US lenders, most mortgages | Many free apps and some lenders |
| Versions | FICO 8 (most common), FICO 9, FICO 10/10T; older versions for mortgages | VantageScore 3.0 and 4.0 |

Your score in a free app may differ from the one a lender uses. Both respond to the same habits.

## How to check your score and reports for free

- **Reports:** **AnnualCreditReport.com** — free reports from all three bureaus, **weekly**.
- **Scores:** many credit card issuers and banks show a free FICO or VantageScore. **myFICO** offers a free FICO 8 score with some plans.
- Check all three reports — not every lender reports to every bureau.

## How to fix errors on your credit report

1. Get your reports from all three bureaus.
2. Look for: accounts that aren't yours, wrong late payments, wrong balances or limits, duplicate collections, and old debts past the 7-year limit.
3. **Dispute online** with the bureau that shows the error (Equifax, Experian or TransUnion). Include proof — statements, letters, payment confirmations.
4. The bureau generally has **30 days** to investigate.
5. Also contact the **lender (furnisher)** directly.
6. If it isn't fixed, complain to the **CFPB** at consumerfinance.gov/complaint.

If you see accounts you didn't open, **freeze your credit** at all three bureaus (free) and report identity theft at **IdentityTheft.gov**.

## A 90-day plan to raise your score

**Week 1**
- Pull all three reports and dispute any errors.
- Set up autopay on every account.
- Bring any **past-due** accounts current.

**Weeks 2–6**
- Pay card balances down, starting with any card above 50% utilization.
- Pay before the statement date.
- Request a limit increase on your oldest card.

**Weeks 6–12**
- Don't apply for new credit unless needed.
- If you have little history, consider a **secured card** or becoming an **authorized user** on a family member's well-managed card.
- Check your score again — utilization changes often show within a month.

## What doesn't affect your FICO score

- Your **income**, job or savings
- **Checking your own** score or report
- **Debit card** use
- Your age, race, religion, marital status or where you live (by law)
- **Rent and utilities** — unless reported through a rent-reporting service or included by the lender's scoring version

> **Tip:** Your score sets your mortgage rate and whether you pay PMI. See the full monthly cost in our [mortgage calculator](/tools/mortgage-calculator) and how [PMI works](/pmi-private-mortgage-insurance-explained).

## Frequently asked questions

### What is a good FICO score?

670 or higher is generally considered good. 740+ gets you near the best rates.

### What is the average credit score in the US?

The average FICO score was 714 in 2026, according to FICO.

### How long do late payments stay on my report?

Seven years from the date of the missed payment, though their effect shrinks over time.

### Does checking my credit score lower it?

No. Checking your own score is a soft inquiry and has no effect.

### How fast can I raise my credit score?

Lowering utilization can help within one or two billing cycles. Recovering from late payments takes longer — often a year or more of on-time payments.

### Should I close credit cards I don't use?

Usually not, especially your oldest card or no-fee cards. Closing them can raise utilization and shorten your history.

### Do I have one credit score?

No. You have many — different FICO versions and VantageScores from each of the three bureaus.

## Sources

- [myFICO — What's in my FICO scores](https://www.myfico.com/credit-education/whats-in-your-credit-score)
- [FICO — Fall 2026 Score Credit Insights: average FICO score 714](https://finviz.com/news/385222/fico-score-credit-insights-report-average-fico-score-holds-steady-at-714-as-consumers-show-resilience)
- [CFPB — How do I get a free copy of my credit reports](https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-a-free-copy-of-my-credit-reports-en-5/)
- [AnnualCreditReport.com — Free weekly credit reports](https://www.annualcreditreport.com/)
- [FTC — Disputing errors on your credit reports](https://consumer.ftc.gov/articles/disputing-errors-your-credit-reports)