What is FICO score 8 used for?

Asked by: Kayli Anderson  |  Last update: November 25, 2025
Score: 4.8/5 (69 votes)

FICO Score 8 is a base credit score that credit providers use to help figure out a potential borrower's credit risk. Your payment history, credit utilization, length of credit history, new credit inquiries, and the types of accounts you have (your credit mix), are all factors that come into play within FICO Score 8.

What is FICO score 8 good for?

FICO Score 8 is a credit-scoring model lenders can use to make lending decisions. FICO calls FICO 8 a base score because it's designed to predict whether a person will repay debt obligations. FICO has other base scores along with industry-specific scores that are more tailored to certain loans.

Do lenders ever use FICO score 8?

For other types of credit, such as personal loans, student loans and retail credit, you'll likely want to know your FICO® Score 8, which is the score most widely used by lenders.

Which is better, FICO score 8 or 9?

Versions 8 and 9 of FICO scores are similar, but FICO score 9 is generally considered the more forgiving of the two for a few reasons: With FICO 9, third-party collections no longer hurt your credit score once those debts are paid off. FICO 9 treats medical collections differently than other types of debt.

Which FICO score is used for car loans?

FICO Score 5 and FICO Score 8 are both common credit scores. Mortgage and auto lenders often use FICO Score 5, while credit card issuers typically use FICO Score 8.

FICO 8 Score Explained

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Do car dealerships use FICO 8 or 9?

The newest version (as of this writing) is FICO® Auto Score 10, introduced in 2020. However, many auto lenders still use FICO® Auto Score 2, FICO® Auto Score 4, FICO® Auto Score 5, and FICO® Auto Score 8. Here is a list of which FICO® auto scores are most commonly used by auto lenders for each credit bureau.

Which FICO score is most accurate?

FICO® and VantageScore® are the two most popular credit scoring models today. FICO and VantageScore credit scores are equally reliable and accurate, based on the specific scoring model that's being used. Tools are available that allow you to check and monitor your credit score for free, with no impact to your credit.

Who pulls FICO Score 8?

1 Two of the most common are the FICO Score 5 and the FICO Score 8. Both are used by lenders to determine a prospective borrower's creditworthiness. But FICO 5 is commonly used in the mortgage lending industry, while FICO 8 is mainly used by credit card issuers.

Is a 900 credit score possible?

What is the highest credit score possible? To start off: No, it's not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.

How is a FICO Score different from a credit score?

Your FICO® scores are just one type of credit score that lenders or creditors may use when determining whether they'll provide you a loan or credit card. While FICO® scores are commonly used by lenders to assess your credit risk, other credit scores can also give you a good idea of where you stand.

Why is FICO 8 higher?

The FICO Bankcard Score 8 is a FICO® Score that's created specifically for credit card issuers to help them understand the likelihood that a borrower will be 90 or more days late on a credit card payment in the next 24 months. The score has a wider scoring range—250 to 900—than the base FICO® Score range of 300 to 850.

What credit score is needed to buy a house with no money down?

What Credit Score Do You Need for a No Down Payment Home Loan? If you're hoping to purchase a home without a down payment, you'll have to prove a specific income and have a credit score that's at least in the mid-600 range.

Do banks use TransUnion or Equifax?

An Equifax credit score isn't used by lenders or creditors to assess a consumers' creditworthiness. Instead, many lenders use FICO Scores® to help determine a potential borrower's creditworthiness. FICO uses credit scores from the three reporting agencies, including Equifax and Transunion, to determine their score.

What is a good FICO 8 score to buy a car?

Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.

How do I increase my FICO 8 score?

How to improve your FICO® Score
  1. Pay your bills on time.
  2. Work on reducing large amounts of debt.
  3. Avoid opening multiple credit accounts at once.
  4. Check your credit report and dispute any errors.

Do banks use FICO score 8?

Most lenders use the FICO scoring model. Many banks and lenders use FICO 8, which isn't the most recent version, but it is the most popular. However, most mortgage lenders use different versions for each credit bureau: Trans Union: FICO Score 4.

What is the average credit score in America?

The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024.

What is the highest credit score to buy a house?

There's no single, specific credit score that will automatically qualify you for a mortgage (though having the maximum score of 850 certainly never hurts). However, while lenders might not set precise qualifying numbers, they do have minimum credit score requirements.

How rare is an 800 credit score?

Even better, just over 1 in 5 people (21.2%) have an exceptional FICO credit score of 800 or above, all but guaranteeing access to the best products and interest rates.

Is FICO 8 good or bad?

The average FICO 8 Score measures around 700, with anything above 750 considered excellent and anything below 600 considered poor. Different factors, such as repayment history and amount of debt, are considered when calculating an individual's FICO 8 Score.

Do dealerships look at FICO score 8?

The base FICO score is also called FICO Score 8 or 9. It's not designed specifically for auto loans, but many lenders use it. It's a number between 300 and 850, and a higher score means that a person is more likely to make loan payments on time.

When buying a house, whose credit score do they use?

Lenders determine what's called the "lower middle score" and usually look at each applicant's middle score. For example, say your credit scores from the three credit bureaus are 723, 716 and 699, and your partners are 688, 657 and 649. Lenders will then use the lower of the two middle scores, which is 657.

What is the riskiest FICO score?

Credit score ranges—what are they?
  • 800 to 850: Excellent Credit Score. Individuals in this range are considered to be low-risk borrowers. ...
  • 740 to 799: Very Good Credit Score. ...
  • 670 to 739: Good Credit Score. ...
  • 580 to 669: Fair Credit Score. ...
  • 300 to 579: Poor Credit Score.

What credit score is needed to buy a car?

Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian. Meanwhile, low-credit borrowers with scores of 600 or lower accounted for only 14% of auto loans.

How many points is credit karma off?

They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use. A VantageScore has the same credit score range as FICO, and uses some of the same information as a FICO score.