FICO stands for the Fair Isaac Company and is the company that created and computes individual credit scores. The average FICO score is 689. It takes a FICO score of 760 to get the best interest rates or prime rates. Here are the 5 factors and the weights given to each factor when used to calculate your credit scores.
- Payment History = 35%
- Amounts Owed = 30%
- Length of Credit History = 15%
- New Credit = 10%
- Types of Credit = 10%