What is FICO Score?
A FICO score is a widely used credit score, ranging from 300 to 850, that lenders rely on to judge how likely a borrower is to repay debt. It is calculated from payment history, amounts owed, length of credit history, new credit, and credit mix. A higher score generally means easier loan approval and a lower interest rate.
Example: A buyer with a 760 FICO score qualifies for a lender's best advertised rate, while a similar buyer at 620 is offered a higher rate or asked for a larger down payment.