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How Does FICO Credit Score Work?

FICO credit scores generally range between a low of 300 and 850 as the highest possible score.

Higher scores indicate a lower credit risk to lenders. Each individual has nearly 50 different credit scores comprised for the Fair Isaac FICO scoring model as each of three national credit bureaus, Equifax, Experian, and TransUnion, has its own database.

We teach consumers about credit and finances while also providing self-help tools for budgeting and other techniques for debt relief. Our objective at National Debt Law is to assist individuals and families with all aspects of their credit and debt.  Debt management programs can get you out of debt and put an end to your financial stress.

FICO 9 Credit Repair Settlement Program

Learn more about FICO 9 Credit Repair and Settlement Programs launched November 2014, and how recent changes brought on by the Consumer Federal Protection Bureau (CFPB) and Fair Issac Credit Reporting (FICO) are removing Medical Debt and Debt Settlement from negative reporting – and improving credit scores for thousands-millions of Americans in debt.

How Does FICO Credit Score Work?

Once you are represented by debt management counselors you will no longer be allowed legally to be harassed by your creditors as the debt management agency will inform and act as your agent and on your behalf.


When you apply for credit for a “credit card, a car loan, or a mortgage”; lenders require to know what risks they take by loaning money to you. FICO credit scores are the de facto industry-standard for credit scoring – which is used by almost all lenders use to determine your creditworthiness and the level of risk you present in borrowing. Every American consumer has (3) three FICO scores – one for each of the three credit bureaus: Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well. Your 3 FICO scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time

Higher FICO Scores = Lower Payments

Taking steps to get your FICO scores in the higher ranges can help you qualify for better rates from lenders. The higher your FICO scores, the less you pay to buy on credit – no matter whether you’re getting a home loan, cell phone, a car loan, or signing up for credit cards.

Example: $150,000 30-year, Fixed-rate mortgage:

Your FICO® Score Your interest rate Your monthly payment
760 – 850 5.78% $878
700 – 759 6% $899
680 – 699 6.18% $916
660 – 679 6.39% $937
640 – 659 6.82% $980
620 – 639 7.37% $1,035
Sample Rates

Savings of $3,144 x 30 Years

As you can see, in the example above using today’s national rates, a person with FICO scores of 760 or better will pay $262 less per month for a $150,000 30-year, fixed-rate mortgage than a person with FICO scores below 620 – that’s a savings of $3,144 a year.

You can see how essential it is to get your scores in the higher ranges if they are low, and also how important it is to keep them high if they are good.

Fair Isaac Credit Reporting  (FICO)

How FICO Credit Scores Work

FICO® is a registered trademark of Fair Isaac Credit Reporting (myfico.com)

Debt Relief Program

It’s time for you to act on your debts now. Our experienced team of negotiators consists of some of the most highly trained negotiators in the country; settling thousands of accounts with outstanding results for businesses, families and individuals like you. If you wish to know more about debt consolidation and settlement programs we will be more than happy to give you advice. If you qualify we can help you negotiate with your creditors.

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