What FICO Scores Ignore (2024)

FAQs

What do FICO scores ignore? ›

However, they do not consider: Your race, color, religion, national origin, sex and marital status. US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act. Your age.

The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.

Generally, credit scores range from 300 to 850, making 300 the lowest possible credit score.

Payment history (35%)

The first thing any lender wants to know is whether you've paid past credit accounts on time. This helps a lender figure out the amount of risk it will take on when extending credit. This is the most important factor in a FICO Score.

The FICO credit-scoring model has been updated over the years, resulting in multiple versions of the score. FICO Score 8 is the most commonly used. But the version may vary by lender and credit product, like applying for a credit card versus financing a car.

There isn't one “more accurate” report. The most accurate report in any individual case is the one that has the most complete information. Creditors don't have to report to any of the credit bureaus, and they certainly aren't required to report to all of them. Some lenders only report to one or two of the bureaus.

Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.

One credit bureau isn't more accurate than another, rather, they may simply have different methods of calculating your credit score. It's important to note that all three bureaus are used widely in the U.S. None of them are more “important” than the others.

Credit scores are three-digit numbers designed to represent the likelihood of paying your bills on time. Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 705, based on VantageScore^® data from March 2024.

What percent of people have a very poor FICO credit score? ›

16% of all consumers have FICO^® Scores in the Very Poor range (300-579). Roughly 62% of consumers with credit scores under 579 are likely to become seriously delinquent (i.e., go more than 90 days past due on a debt payment) in the future.

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

Make On-Time Payments

Always making payments on time can go the furthest to helping you improve credit. Actions you can take: If you're having trouble making payments on time, set up autopay for at least the minimum due and create calendar reminders and alerts through your online account.

Consumers with scores in this range may be considered subprime borrowers, eligible only for loans with interest rates significantly higher than the best available. Poor: 300 to 579. FICO^® Scores that range from 300 to 579 are considered poor.

Subprime (credit scores of 580-619) Near-prime (credit scores of 620-659) Prime (credit scores of 660-719) Super-prime (credit scores of 720 or above)

Late or missed payments. Collection accounts. Account balances are too high. The balance you have on revolving accounts, such as credit cards, is too close to the credit limit.

Using more of your credit card balance than usual — even if you pay on time — can reduce your score until a new, lower balance is reported the following month. Closed accounts and lower credit limits can also result in lower scores even if your payment behavior has not changed.

Your FICO^® Score uses the information on your credit reports to calculate your FICO Score, so inaccurate or incorrect information on your credit report can hurt your score. All disputes with Equifax are handled online. All disputes with Experian are handled online.