If you've ever checked Credit Karma and then been surprised when a lender told you a different number, you've experienced the FICO confusion that trips up millions of Americans.
Here's the truth: Credit Karma shows you a VantageScore. Most lenders use FICO. They're different models that look at the same data differently — and the gap between them can be significant.
Understanding your FICO score is the first step to actually improving it.
What Is a FICO Score?
FICO stands for Fair Isaac Corporation, the company that created the scoring model in 1989. It's the most widely used credit scoring model in the United States, used by 90% of top lenders.
Your FICO score is a three-digit number between 300 and 850. It's a snapshot of your credit risk — essentially, how likely you are to repay debt. The higher the score, the lower the risk in a lender's eyes.
FICO vs. VantageScore: What's the Difference?
| Feature | FICO | VantageScore |
|---|---|---|
| Creator | Fair Isaac Corp | Equifax, Experian, TransUnion |
| Used by lenders? | 90% of top lenders | Less common in lending |
| Free monitoring via | Experian, your bank | Credit Karma, Credit Sesame |
| Score range | 300–850 | 300–850 |
| Minimum history needed | 6 months | 1 month |
Both use your credit report data, but they weight factors differently. VantageScore is useful for tracking trends. FICO is what actually gets you approved — or denied.
How Your FICO Score Is Calculated
FICO uses five factors, each with a defined weight:
1. Payment History — 35%
The biggest factor by far. Every on-time payment helps. Every late payment (30+ days) hurts — and stays on your report for 7 years.
Key rule: Never be more than 29 days late. At 30 days, the late payment is reportable. At 60 and 90 days, the damage compounds.
2. Amounts Owed (Utilization) — 30%
How much of your available credit are you using? This is calculated per card and across all cards combined.
Key rule: Keep utilization below 30%. The best scores typically show below 10%.
3. Length of Credit History — 15%
How old is your oldest account? Your newest? What's the average age of all accounts?
Key rule: Don't close old cards, even if you don't use them. They're holding up your average age of accounts.
4. Credit Mix — 10%
Do you have different types of credit? Credit cards (revolving) and installment loans (car, mortgage, student loans) together show you can manage different obligations.
Key rule: You don't need to take on debt just for mix, but having both types does help.
5. New Credit — 10%
Every time you apply for credit, a hard inquiry is recorded. Multiple inquiries in a short period signal risk.
Key rule: Don't apply for new credit unless you need it. Space applications at least 6 months apart when possible.
FICO Score Ranges: What They Mean in the Real World
| Score Range | Rating | What It Means |
|---|---|---|
| 800–850 | Exceptional | Best rates on everything; near-automatic approvals |
| 740–799 | Very Good | Excellent rates; easy approvals |
| 670–739 | Good | Most loans available; competitive rates |
| 580–669 | Fair | Higher interest rates; some denials |
| Below 580 | Poor | Limited options; secured cards and subprime loans |
The difference between a 620 and a 720 score on a $300,000 mortgage can mean $50,000+ in extra interest over the life of the loan. The difference between a 720 and 780 can still save you thousands. Your score isn't just a number — it's a price tag.
FICO 8 vs. FICO 9 vs. Industry Scores
FICO has released multiple versions of its scoring model. The most important:
- FICO 8 — Still the most widely used by credit card lenders and many mortgage lenders
- FICO 9 — Ignores paid collections; treats medical debt differently
- FICO 10 & 10T — Newer versions being adopted; trends matter more
- Auto-specific scores — Lenders use FICO Auto Score when you apply for a car loan
- Mortgage-specific scores — Mortgage lenders often pull FICO 2, 4, and 5 from all three bureaus
This is why your score can vary: different lenders pull different FICO versions, plus different bureaus may have different information.
How to Get Your Actual FICO Score for Free
- Experian (experian.com) — Free FICO Score 8 with free account
- Your bank or credit card — Many issuers (Discover, Bank of America, Chase, etc.) provide free FICO monitoring
- Credit unions — Many offer free FICO to members
- myFICO.com — Paid service ($20–$40/month) with all FICO versions and bureau reports
The Bottom Line
Your FICO score is the number that actually determines your financial life — your mortgage rate, car loan rate, whether you get approved for an apartment, and sometimes even whether you get a job.
Credit Karma is useful, but it's not the score lenders use. Get your real FICO, understand the five factors, and focus your energy where it moves the needle fastest: payment history and utilization. Ready to put this knowledge to work? See how to raise your credit score 100 points — or if you're already in the 700s, learn what it takes to hit 800.
Everything else is noise.
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