What is FICO® Score 8?
FICO Score 8 is one of the many different versions of FICO credit scores. Since FICO Score 8 was launched, two newer versions of base scores—FICO Scores 9 and 10—have been released. However, FICO Score 8 remains one of the most widely used FICO credit scores.
Learn more about FICO 8, including how it’s calculated, when it’s used and how it differs from other credit scores.
What you’ll learn:
- 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. There are also credit scores from other companies, such as VantageScore.
- Like other credit scores, FICO Score 8 is based on information in credit reports.
FICO Score 8 explained
FICO is a popular credit-scoring company. Its credit-scoring models help lenders as they review credit and loan applications from potential borrowers. Like its competitor VantageScore, FICO has multiple versions of its credit-scoring models. FICO Score 8 is one example.
Sometimes called FICO 8 for short, it was launched in 2009. It’s one of FICO’s base credit scores, which means it isn’t designed for a specific type of credit. Like other base credit scores, the scores range from 300 to 850. And like FICO’s other base credit scores, FICO Score 8 is intended to determine the likelihood that a borrower will pay back a loan.
How is FICO Score 8 calculated?
Like other base FICO scores, the FICO 8 model is based on information in credit reports. FICO groups information from a person’s credit history into these five categories and weighs them according to percentages:
- Payment history (35%): Whether you make payments on time
- Amounts owed (30%): How much money you owe across accounts and how much of your total available credit is in use
- Length of credit history (15%): How long you’ve had your credit accounts and how long it’s been since you’ve used them
- Credit mix (10%): What different types of credit you have
- New credit (10%): Whether you’ve opened multiple new accounts in a short period of time
Who uses FICO Score 8?
Lenders and other businesses can decide whether to use a certain type of credit score to make lending and other decisions. According to FICO, its FICO 8 is the “score most widely used by lenders.” But some lenders might use other FICO versions, such as FICO Score 9 or 10, or credit scores from VantageScore.
How FICO Score 8 is different from other FICO score versions
When FICO Score 8 was released, it included several changes from previous base FICO score versions, including these:
- High credit utilization ratios could affect your score more.
- A single late payment may not hurt your score as much.
- Collections accounts are ignored if the original balance was under $100.
FICO Score 8 vs. FICO Score 9
When FICO Score 9 became available in 2016, it introduced changes like these:
- Medical collections accounts may not have as much of an impact on your score.
- Paid-off collections accounts no longer negatively affect your credit score.
- Rental payments can affect your score, if applicable.
FICO Score 8 vs. FICO Score 10
The FICO Score 10 suite added a new base FICO Score 10. It builds off of previous versions and includes FICO Score 10 T, which incorporates your credit trends.
Industry-specific FICO scores
FICO also has industry-specific scores. These versions are similar to the base scores but designed more specifically for certain types of credit reviews. For example, lenders considering credit card applications may use FICO Bankcard Score 8. And FICO Auto Score 8 may be used for auto loans. Unlike base FICO scores, industry-specific FICO scores range from 250 to 900.
Which credit score is most important?
The score that matters most is the one a creditor will use to evaluate your application. However, you typically won’t know which type of credit score a lender will use. Remember: Different lenders may use different types and versions of credit scores.
You might not know which model the creditor will use, but keep in mind that credit scores are generally calculated using information from your credit reports. To stay on top of your scores, you can focus on using credit responsibly over time. A positive history of on-time payments and a low credit utilization ratio could help you build and maintain good credit.
Key takeaways: FICO Score 8
FICO Score 8 is the type of FICO score that lenders use to assess credit risk. It’s one of FICO’s base scores, which means it isn’t industry-specific. Like other types of credit scores, this score is calculated using information from credit reports.
If you’re looking to improve your credit scores, regularly monitoring your credit can help you track your progress. One easy way to do that is with CreditWise from Capital One.
Among its many features, CreditWise gives you access to your VantageScore 3.0 credit score. It’s not the same as FICO 8. But it’s calculated based on similar factors, such as payment history. And VantageScore says “most top 10 U.S. banks, large credit unions and leading fintechs use VantageScore credit scores” to make lending decisions.
