What is FICO® Score 10?
Quick insights
- Both FICO Score 10 and FICO 10T are credit scoring models designed to help lenders predict credit risk with greater accuracy.
- The FICO 10 suite includes a version called FICO 10T that uses trended data to evaluate your financial habits over time.
- Paying your bills on time and keeping your balances low remain key factors for your credit profile across all models.
When you apply for a loan or credit card, lenders use credit scoring models to help make their decisions. FICO Score 10 is a model designed to help give lenders a more precise view of your credit risk. Learning how this model works may help you better understand what lenders evaluate when you apply and practice habits that support your overall credit profile.
How does FICO Score 10 work?
When a lender reviews your application, they don't just rely on a single, universal credit score. Because different scoring companies offer various models and versions, you actually have many credit scores that help assess your creditworthiness.
FICO Score 10 is part of a suite of scoring models created by Fair Isaac Corp. It is designed to offer lenders a highly predictive assessment of credit risk. The suite includes two main versions that lenders might use:
- FICO Score 10: This model relies on traditional credit report data to predict risk. It updates the math used in older models in an effort to help lenders make more accurate decisions.
- FICO Score 10T: The "T" stands for trended data. Trended data means the model can evaluate patterns over time, not just a snapshot. For example, it may check whether your credit card balance is going up, going down or staying steady over the past 24 months.
What is the difference between FICO Score 10 and older versions?
While FICO Score 10 offers updated math, it is not yet the dominant model. Lenders choose which version they use, and many still rely on older models like FICO 8 for credit cards or classic FICO scores for mortgages.
Lenders can choose to use FICO Score 10 for credit cards or personal loans, and the Federal Housing Finance Agency has approved FICO 10T for certain mortgage-related uses. However, FICO Score 10 introduces a few updates to how it weighs certain financial behaviors.
Here are a few practical ways it may differ from previous models:
- Treatment of personal loans: FICO Score 10 may look more closely at personal loans used for debt consolidation. If you consolidate credit card debt into a personal loan but then run up your credit card balances again, this model may view that behavior as a higher risk.
- Focus on historical trends: If a lender uses FICO 10T, your historical payment habits might play a larger role. Older models take a snapshot of your credit report at a specific moment, while FICO 10T checks your behavior over a longer period.
- Delinquency prediction: The model is built to be more precise in predicting whether a borrower might fall behind on payments.
FICO Score 10 ranges
While FICO Score 10 updates the math behind your score, it still uses the same 300 to 850 scale as previous versions, such as the widely used FICO 8 version. Here are the standard FICO credit score ranges:
- Exceptional: 800 and above
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 579 and below
How this model may impact your credit applications
The model a lender chooses can be a factor if you’re applying for a new credit card, asking for a credit line increase or trying to take out a loan. A credit score may influence your eligibility to apply and the terms you are offered, but it usually isn't the only factor.
Because FICO Score 10 and 10T aim for high predictive accuracy, certain habits might impact your score differently than they would under older models. For instance, consistently paying off your credit card in full each month may reflect positively in a trended-data model. On the other hand, carrying a high balance month after month might be viewed as a higher risk.
It may be helpful to consider that a single outcome doesn't always reflect your overall credit profile. Credit card issuers and lenders may also consider your income, current debts and how much credit you already have.
Ways to monitor your credit profile
Small credit score differences across models can cause confusion. Score differences don't always mean a mistake, but they can be a signal to monitor your credit report. A credit report is a record of your credit history from a credit bureau like Experian™, Equifax® or TransUnion®.
Monitoring your credit report may help you spot errors. The credit report dispute process enables consumers to flag potential errors or inaccuracies.
If you want a consistent place to get your score, Chase Credit Journey® is a free online tool for anyone 18 or older with a valid U.S. address and Social Security number (SSN), offering access to your credit score and personalized score improvement plans provided by Experian—no Chase account required.
When you enroll, you receive your Experian credit report and a credit score based on the VantageScore® 3.0 model. While this differs from FICO Score 10, it may be a helpful resource since these models rely on much of the same underlying data. Certain behaviors tend to matter across models. Paying on time and keeping balances at a manageable level may help over time.
The bottom line
FICO Score 10 and FICO 10T are credit scoring models designed to give lenders a precise look at your credit history. Monitoring your credit report and paying on time may help you maintain your credit profile across different models.
