◈ GLOSSARY · PERSONAL FINANCE
FICO Score.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
A credit score from Fair Isaac Corporation, ranging 300–850, that lenders use to price risk on mortgages, auto loans, and credit cards. The five inputs are payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). The score most lenders actually pull is FICO 8 or, for mortgages, FICO 2/4/5 — the free score on your credit card app is often VantageScore, which is similar but not identical.
◈ IN PRACTICE
Example
A borrower with a 760 FICO might get a 30-year mortgage at 6.5%, while a 660 FICO on the same loan amount could pay 7.25% — on a $400,000 loan that's roughly $200 more per month for the lower score.