What Is FICO Score 8 (Fair Isaac Corporation)?

FICO Score 8 rates you on a 300‑850 scale using five weighted categories that draw directly from your credit report. Payment history carries the biggest influence at 35%, followed by amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%) - these percentages are generally applied to produce the final number.

FICO Score 8 bases a 300‑850 rating on five core factors, each assigned a specific weight.

• Payment history  -  about 35% of the score; on‑time payments raise it, missed payments lower it.
• Amounts owed  -  roughly 30%; smaller balances relative to limits improve the score.
• Length of credit history  -  around 15%; older accounts contribute more than newer ones.
• New credit  -  near 10%; recent inquiries or newly opened accounts can temporarily drag the score down.
• Credit mix  -  also about 10%; a blend of revolving and installment accounts is viewed positively.

FICO 8 and FICO 9 both score on a 300‑850 scale, but FICO 9 trims the impact of paid medical collections, drops tax liens entirely, and gives newer weight to rental and utility‑payment histories, while keeping the classic 35% payment‑history, 30% amounts‑owed, 15% length‑of‑history, 10% new‑credit, and 10% credit‑mix mix that you saw in the 'five factors' section.

Generally, lenders still favor the older model for mortgage underwriting, so the next section on lender use will show which version your bank likely runs.

VantageScore (3.0/4.0) also uses a 300‑850 range, yet its formula shifts the balance: payment history typically accounts for about 40%, credit utilization 20%, age of credit roughly 21%, credit mix 11%, and recent activity 5%. It accepts consumers with as little as one month of activity and routinely incorporates rent‑payment data, something FICO 8 does only when a lender opts‑in. Because of these differences, you'll see VantageScore scores rise or fall faster than FICO 8, a point to remember when you check the 'find out if your lender uses FICO 8' section.

FICO 9 model updates explained
VantageScore scoring methodology overview

FICO 8 is the model most major banks, credit‑union mortgage desks, and auto‑loan issuers have adopted, but a handful of subprime lenders still run older versions such as FICO 4 or VantageScore. To know which model your lender uses, follow these quick checks:

• Review the loan estimate or credit‑check disclosure; lenders must state the scoring model (look for 'FICO Score 8' or 'FICO 8').
• Ask the loan officer or customer‑service rep directly; they can confirm the version they run.
• Check the email or portal message that says 'Your credit score is a FICO Score 8 (300‑850)'.
• Pull your free credit‑report from a site that shows the exact model (e.g., FICO model details page).
• Use a lender's pre‑qualification tool that displays the score type before you submit an application.
• Look for public statements on the lender's website; many list 'FICO 8' under credit‑scoring methodology.

If none of these sources mention the model, assume the lender may still be using an older version and ask for clarification before proceeding.

Lenders feed a borrower's 300‑850 FICO Score 8 into their risk engines and instantly assign an approval tier and an interest‑rate band.

Generally, scores 720 and above land the lowest‑cost tier, 660‑719 receive the standard tier, and anything below 660 pushes borrowers into a higher‑cost tier. For example, a conventional mortgage lender may offer a 6.25 % APR to a 740 score, 6.75 % to a 680 score, and 7.5 % to a 620 score; auto‑loan and credit‑card issuers adjust rates by about 0.25 % for each 20‑point move within a tier.

Because payment history counts for 35 % of FICO 8, a recent delinquency can knock a borrower out of the low‑cost bucket even with a 730 overall score; strong credit‑utilization (30 %) can offset a modest hit in inquiries (10 %). Lenders therefore look beyond the number, and the upcoming real‑scenario section shows how small swings can change pricing dramatically.

• Paying off a credit card that sat at about 30 % utilization drops the ratio to roughly 5 %, generally raises the FICO Score 8 by 20‑40 points because utilization carries a 30 % weight, see the official FICO factor weights.
• Missing a single $200 auto‑loan payment lowers payment‑history performance from 99 % to 98 %, typically drags the score down 30‑50 points since payment history accounts for 35 % of the model.
• Opening a new credit card triggers a hard inquiry and adds a $1,000 balance, usually cuts 10‑20 points as new credit and short‑term debt affect the 10 % new‑account factor.
• Paying off a medical collection removes a negative public‑record entry, often lifts the score 15‑30 points because collections still influence payment history despite low weight.
• Adding yourself as an authorized user on a spouse's $5,000 line with 10 % utilization can boost the score 20‑40 points, since authorized‑user activity improves credit‑mix and length‑of‑history factors.

FICO 8 counts a collection as a negative item in the payment‑history bucket, which makes up roughly 35 % of the 300‑850 score range; medical collections receive a softer treatment than non‑medical ones.

• A charged‑off or delinquent collection (any type) stays on the credit report for seven years and reduces payment‑history weight, but the impact lessens after 24 months of on‑time payments.
• Medical collections are excluded from the score for the first 12 months after they are reported, giving borrowers a grace period to arrange insurance or payment plans.
• Once a medical collection is reported past the 12‑month window, FICO 8 treats it like any other collection, but the model applies a lower severity factor, so the score drop is typically smaller.
• If a collection - medical or not - is paid in full, FICO 8 still shows the account as 'paid collection' and it remains for seven years, though the newer 'paid‑collection' marker lessens the negative effect than an unpaid balance.
• Recent updates to the model allow a once‑in‑a‑while 'medical‑only' exclusion where the entire medical debt is ignored if the borrower has no other negative items, but this applies only when the medical balance is the sole derogatory account.

These rules mean that clearing non‑medical collections quickly benefits the 35 % payment‑history component, while medical debts give you extra time before they affect the same component. The next section shows how lenders use FICO 8 in approvals and pricing, building on this understanding of collections impact.

A focused 90‑day sprint can boost a FICO 8 score from the 300‑850 range by targeting the five weighted factors (Payment History 35%, Amounts Owed 30%, Length of Credit History 15%, New Credit 10%, Credit Mix 10%).

1. Weeks 1‑2 - Pull & dispute: Order free reports from the three bureaus, scan for errors, and file disputes online. Clean data immediately removes false negatives that hurt the Payment History (35%) and Amounts Owed (30%) components.
2. Weeks 3‑4 - Lower utilization: Pay down revolving balances to ≤30% of each limit, ideally ≤10%. If you have strong payment history, ask issuers for a credit‑limit increase; the higher denominator lowers utilization without extra spending.
3. Weeks 5‑6 - Freeze new hard pulls: Pause applications for credit cards, loans, or mortgages. Each hard inquiry temporarily dents New Credit (10%) and can signal risk to lenders.
4. Weeks 7‑8 - Automate on‑time payments: Set up automatic transfers for all revolving and installment accounts. A flawless 35% Payment History weight is the single biggest driver of score gains.
5. Weeks 9‑10 - Authorized‑user boost: Add a trusted family member as an authorized user on a long‑standing, low‑balance card with a good payment record. This adds positive Length of Credit History (15%) and Credit Mix (10%) without opening a new line.
6. Weeks 11‑12 - Review & re‑score: Check the updated score, note improvements, and if a lender uses a 're‑score' option, request it to capture the recent gains. Continue the habits established above to sustain growth.

For deeper insight into how each factor influences FICO 8, see the official FICO factor weights.

Dispute any inaccurate items and ask credit bureaus to delete accounts that are wrongly hurting your FICO 8 score (300‑850, payment history 35%). First, pull your free annual report, mark each error - misspelled name, wrong balance, duplicated entry - and submit an online or mailed dispute to the reporting bureau, attaching a copy of the statement that proves the mistake; the bureau must investigate within 30 days and, if it finds the item invalid, remove it from your file, instantly lifting the weight of that negative mark.

If the account is accurate but still drags your score, consider a goodwill letter to the creditor or a 'pay‑for‑delete' agreement (though not guaranteed); once the negative entry disappears, the 35% payment‑history factor improves, and the 15% credit‑mix and 10% new‑credit factors benefit from a cleaner report. For older collections or charge‑offs, request a 're‑aging' or deletion if the bureau's reporting dates exceed the legal 7‑year window. Consumer Finance Bureau guide to disputes

Adding a trusted family member as an authorized user (AU) can lift a FICO Score 8, which ranges from 300‑850, by boosting the payment history (35%) and lowering the amounts‑owed ratio (30%). Use this tactic safely by choosing primary accounts that are old, have low utilization, and show consistent on‑time payments, because FICO 8 treats the AU's entire account history as the AU's own.

• Select a primary card that's at least 3‑5 years old, with utilization below 30% and no recent delinquencies.
• Verify the card issuer reports AU activity to the major bureaus; most do, but some specialty cards do not.
• Limit the number of AUs per primary account; adding too many can trigger lender scrutiny.
• Monitor the primary account monthly; a missed payment or rising balance will immediately hurt the AU's score.
• Remove the AU status if the primary account's risk profile deteriorates or if a lender you're applying to excludes AU balances (e.g., many mortgage lenders).
• Keep the AU account open even after the score improves; closing it can erase the positive history and raise utilization.
• Check your credit reports for AU entries and dispute any inaccuracies using the steps in the 'dispute errors' section.

These steps let you leverage AU benefits while protecting your FICO 8 score from the common pitfalls that can reverse gains.