Glossary
FICO Score
A FICO score is the most widely used credit scoring model, created by Fair Isaac Corporation. It ranges from 300 to 850 and is used by 90% of top U.S. lenders to make credit decisions.
Why it matters
While "credit score" is a general term, FICO is the specific model most lenders actually use. Your FICO score is built from five weighted factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Understanding these weights tells you exactly where to focus improvement efforts.
Example
A FICO score of 740+ is generally considered "very good" and qualifies you for the best interest rates. Below 670 is considered "fair" and significantly increases borrowing costs.
How Ray helps
Ray monitors the financial behaviors that feed into your FICO score, especially credit utilization and payment patterns. Ask to check utilization, the second-biggest FICO factor.
$ ray "what percentage of my credit limit am I using?"Related terms
Credit Score
A credit score is a three-digit number (typically 300-850) that represents your creditworthiness based on your borrowing and repayment history.
Debt-to-Income Ratio
Debt-to-income ratio (DTI) compares your total monthly debt payments to your gross monthly income, expressed as a percentage.
APR (Annual Percentage Rate)
APR is the yearly cost of borrowing money, expressed as a percentage.
Mortgage
A mortgage is a loan used to purchase real estate, where the property itself serves as collateral.
Liquidity
Liquidity refers to how quickly and easily you can convert an asset to cash without significant loss in value.