FICO Score 8 is the most widely used credit scoring model by lenders, making it extremely common in lending decisions. As of 2024, over 22% of U.S. consumers have "exceptional" scores (800-850), while nearly half have scores in the 740-850 range. The average FICO score in the U.S. is 715.
The result is that there are multiple FICO Score versions available, in addition to the most widely used version, FICO Score 8.
Basically, "credit score" and "FICO score" are all referring to the same thing. A FICO score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.
National Average FICO® Score at 715: The average score dipped two points from 2024 (although remained stable since FICO's last update), driven by rising credit card utilization and a spike in missed payments, in part due to resumed student loan delinquency reporting.
Lenders predominantly use FICO Score 8 for most credit decisions, as it's the most widely adopted version of the FICO Score. FICO Score 9 is newer and includes some improvements. As of now, though, many lenders still rely on FICO Score 8 because it has been in use longer and has a more established track record.
There are several credit scoring models out there, but FICO Score 8 is commonly used by lenders to determine your eligibility for credit and better understand your creditworthiness.
8 Ways to Improve Your Credit Score
FICO offers many types of FICO® Scores to auto lenders. Some of the models that your lender might use include: FICO® Score 8 or 9: These are older generic FICO scoring models, meaning they weren't created for a specific type of lender. However, many lenders still use them, including some auto lenders.
Those with exceptional credit, FICO® Scores of 800 and above, will likely receive the same terms as someone with a perfect score of 850—all else being equal. Even those with FICO® Scores slightly below 800 may receive the same terms as those who have reached the top of the credit score scale.
The Bottom Line
FICO Score 5 is most commonly used by mortgage lenders, while FICO Score 8 is favored by credit card issuers. Unlike FICO 5, FICO 8 is more forgiving of occasional late payments and incorporates data from all three major credit reporting agencies.
Many factors impact your FICO score including how much credit you use, how long you've had credit, the type of credit accounts, and how many hard inquiries you have on your credit report. Managing these factors responsibly can contribute to an improved FICO score over time.
Credit score is certainly not the only factor at play when lenders look at mortgage applications, but generally, a higher score will allow you to secure a lower mortgage rate. Typically, conventional lenders want to see a score of at least 620.
For base FICO® Scores, the credit score ranges are: Poor credit: 300 to 579. Fair credit: 580 to 669. Good credit: 670 to 739.
It's partly true: most negative items like late payments and collections are removed from your credit report after about seven years, but the underlying debt often still exists, and bankruptcies (Chapter 7) last 10 years, so your credit isn't entirely "clear" but mostly refreshed from old negatives. The 7-year clock starts from the date of the original delinquency, not when you paid it off or sent to collections, and the debt itself can still be pursued by collectors.
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
FICO® Score 8, created by the Fair Isaac Corporation (FICO), is one of the most popular scoring models in use today, along with other industry-specific versions. In fact, 90% of top lenders use FICO® Credit Scores. FICO® Credit Scores typically range from 300 to 8501.
The majority of credit providers appear to use a single credit bureau and most often that bureau is Equifax. The ACCC also found that even where the large credit providers contract with multiple bureaux, some see Equifax as the primary bureau and utilise Experian and illion as a secondary data source.
The Federal Reserve tracks credit card interest rates two ways — the average rate on all accounts, and the average rate on accounts that incur interest. As discussed above, more than 40% of cardholders typically pay their balances in full, so those accounts don't incur interest.