Your credit score is one of the most important measures of your creditworthiness. For your FICO® Score, it's a three digit number usually ranging between 300 to 850 and is based on metrics developed by Fair Isaac Corporation. By understanding what impacts your credit score, you can take steps to improve it.
The five pieces of your credit score
Your credit score is based on the following five factors:
- Your payment history accounts for 35% of your score. This shows whether you make payments on time, how often you miss payments, how many days past the due date you pay your bills, and how recently payments have been missed. Payments made over 30 days late will typically be reported by your lender and lower your credit scores. How far behind you are on a bill payment, the number of accounts that show late payments and whether you've brought the accounts current are all factors. The higher your number of on-time payments, the higher your score will be. Every time you miss a payment, you negatively impact your score.
- How much you owe on loans and credit cards makes up 30% of your score. This is based on the entire amount you owe, the number and types of accounts you have, and the amount of money owed compared to how much credit you have available. High balances and maxed-out credit cards will lower your credit score, but smaller balances may raise it – if you pay on time. New loans with little payment history may drop your score temporarily, but loans that are closer to being paid off may increase it because they show a successful payment history.
- The length of your credit history accounts for 15% of your score. The longer your history of making timely payments, the higher your score will be. Credit scoring models generally look at the average age of your credit when factoring in credit history. This is why you might consider keeping your accounts open and active. It may seem wise to avoid applying for credit and carrying debt, but it may actually hurt your score if lenders have no credit history to review.
- The types of accounts you have make up 10% of your score. Having a mix of accounts, including installment loans, home loans, and retail and credit cards may help improve your score.
- Recent credit activity makes up the final 10%. If you’ve opened a lot of accounts recently or applied to open accounts, it may suggest potential financial trouble and may lower your score. Credit scoring models are also built to recognize that recent loan activity does not mean a consumer is necessarily risky.
Ultimately, one way to potentially improve your credit score is to use loans and credit cards responsibly and make prompt payments. The more your credit history shows that you may be able to responsibly handle credit, the more willing lenders will be to offer you credit at a competitive rate.
Did you know? Wells Fargo offers eligible customers complimentary access to their FICO® Score – plus tools, tips, and much more. Learn how to access your FICO Score.
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Certain information provided by Fair Isaac Corporation, San Rafael, California.
You must be the primary account holder of an eligible Wells Fargo consumer account with a FICO® Score available, and enrolled in Wells Fargo Online®. Eligible Wells Fargo consumer accounts include deposit, loan, and credit accounts, but other consumer accounts may also be eligible. Contact Wells Fargo for details. Availability may be affected by your mobile carrier's coverage area. Your mobile carrier’s message and data rates may apply.
Please note that the score provided under this service is for educational purposes and may not be the score used by Wells Fargo to make credit decisions. Wells Fargo looks at many factors to determine your credit options; therefore, a specific FICO® Score or Wells Fargo credit rating does not guarantee a specific loan rate, approval of a loan, or an upgrade on a credit card.
FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
Wells Fargo Bank, N.A. Member FDIC.
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FAQs
Banks usually decline to advertise internal methodologies for determining creditworthiness, but Wells Fargo confirms it pulls reports from all three major credit bureaus. A representative with the bank also confirmed the financial institution reports credit activity to all three major consumer reporting agencies.
What credit score does Wells Fargo require? ›
Good credit: A FICO® Score of 670 or higher is suggested when applying for a Wells Fargo card. There isn't a strict minimum credit score with Wells Fargo, but it typically only approves applicants with good credit or excellent credit.
How exactly is credit score calculated? ›
What's in my FICO® Scores? FICO Scores are calculated using many different pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).
Why is my Wells Fargo FICO Score different from Experian? ›
The credit scores you see when you check a service like Experian may differ from the FICO scores a lender sees when checking your credit. That's because the lender may be using a FICO score based on data from a different credit bureau. It may also be looking at a different FICO scoring method.
Why is my Wells Fargo credit score higher than credit Karma? ›
This is mainly because of two reasons: For one, lenders may pull your credit from different credit bureaus, whether it is Experian, Equifax or TransUnion. Your score can then differ based on what bureau your credit report is pulled from since they don't all receive the same information about your credit accounts.
Which credit bureau does Wells Fargo pull from? ›
Wells Fargo uses all three major credit bureaus: Equifax, Experian, and TransUnion. Either one or more credit bureaus may be used when evaluating a Wells Fargo credit card application. Cardholder reports suggest the state you live in may factor into which credit bureau Wells Fargo uses when it pulls your credit report.
Is it hard to get approved by Wells Fargo? ›
Is it hard to get approved for the Wells Fargo Active Cash® Card? It may be hard to get approved for the Wells Fargo Active Cash card if your credit score isn't at least 670 or higher. While there's no strict minimum requirement, the card typically approves those with a credit score within the good to excellent range.
What is the Wells Fargo 6 month rule? ›
If you opened a Wells Fargo Credit Card account within the last six months, then you may not qualify to open an additional Wells Fargo Credit Card account.
How to increase FICO score in Wells Fargo? ›
Trying to raise your credit score?
- Keep track of your progress. ...
- Always pay bills on time. ...
- Keep credit balances low. ...
- Pay your credit cards more than once a month. ...
- Consider requesting an increase to your credit limit. ...
- Keep unused accounts open. ...
- Be careful about opening new accounts. ...
- Diversify your debt.
You can't arrive at precisely the same score as the credit-scoring companies or lenders because they use proprietary formulas to determine your score. However, you can calculate some of the factors that contribute to your score, such as your credit utilization ratio and the length of time you've had credit.
Credit score distribution: How rare is an exceptional 800 to 850 score?
| FICO® Score range | Percent within range |
|---|
| 650-699 | 12% |
| 700-749 | 17% |
| 750-799 | 24% |
| 800-850 | 23% |
4 more rowsMay 31, 2023
Using more of your credit card balance than usual — even if you pay on time — can reduce your score until a new, lower balance is reported the following month. Closed accounts and lower credit limits can also result in lower scores even if your payment behavior has not changed.
Does Wells Fargo use FICO 8 or 9? ›
FICO® Score 9 from Experian®
Simple access via Wells Fargo Online, to help you know where you stand.
How often does Wells Fargo update FICO score? ›
Wells Fargo reports to the credit bureaus monthly, within days after the end of a cardholder's monthly billing period. Wells Fargo reports a credit card's credit limit, account balance, payment history, and more to all three of the major credit bureaus: TransUnion, Equifax, and Experian.
What is Wells Fargo's rating? ›
Our Wells Fargo Ratings
We at the MarketWatch Guides team give Wells Fargo 3.8 out of 5 stars after evaluating factors including its branch availability, account fees, interest rates and customer support.
What bank has the most accurate credit score? ›
Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
What is the most trusted credit score check? ›
Equifax. Equifax, one of the 3 major bureaus, has the strongest of the 3 offerings. Users can access credit reports from all 3 major bureaus, and Equifax has one of the best packages of tools and resources of any of the sites reviewed.
How accurate are bank credit scores? ›
Yes, you can trust credit scores reported by your financial institution. They will accurately reflect your credit history as it appears on the credit report upon which the score is based.
Does viewing your FICO score on Wells Fargo lower it? ›
Credit Close-UpSM is complimentary to Wells Fargo Online® 2 customers, and using it won't affect your score. Follow these steps to enroll or re-enroll in the new enhanced Credit Close-Up: Click "View my Score" below.
Your credit score is one of the most important measures of your creditworthiness. For your FICO® Score, it's a three digit number usually ranging between 300 to 850 and is based on metrics developed by Fair Isaac Corporation. By understanding what impacts your credit score, you can take steps to improve it.