FICO Score

A FICO Score is a three-digit number (300-850) that tells US lenders how trustworthy you are with borrowed money. For European founders building a US LLC, it's the single most important metric for getting business credit cards, bank loans, and favorable interest rates.

What Is a FICO Score?

FICO stands for Fair Isaac and Company, the firm that created the scoring model in 1989. Your FICO Score is a numerical summary of your creditworthiness, calculated from your credit history. It ranges from 300 (very poor) to 850 (excellent). Most US lenders use FICO scores to decide whether to lend you money and at what interest rate.

How FICO Scores Are Calculated

Five factors make up your FICO Score, weighted as follows:

• Payment history (35%): Do you pay bills on time? Missed payments, late payments, and defaults damage this component severely.
• Credit utilization (30%): What percentage of your available credit are you using? Keeping this below 30% is ideal.
• Length of credit history (15%): How long have your accounts been open? Older accounts help.
• Credit mix (10%): Do you have both revolving credit (credit cards) and installment credit (loans)? Variety is rewarded.
• New credit inquiries (10%): Recent hard inquiries (when you apply for new credit) can lower your score temporarily.

Why FICO Matters for Non-US Founders

When you arrive in the US with a foreign name, passport, and no US credit history, banks see zero track record. Your FICO Score is the language they speak. A strong personal FICO score (typically 700+) opens doors to business credit products, especially in the early days of your LLC when business credit is thin.

European founders often start with an ITIN and a personal credit card or small secured card. Responsible use builds your personal FICO, which then anchors your ability to qualify for business credit cards and eventually business loans without a personal guarantee.

Building FICO from Scratch

Example: A German founder forms a Wyoming LLC with an ITIN. She gets a secured credit card ($500 deposit, 100% credit limit). Over 12 months, she charges small expenses monthly and pays the balance in full by the due date. Her FICO climbs from 600 to 730. Within 18 months, she qualifies for an unsecured business card with a $10,000 limit, no personal guarantee required.

Founders Credit handles the LLC formation, ITIN, and EIN setup so you can focus on building credit cleanly. The faster you have a functioning US tax ID and bank account, the sooner you can start the credit-building cycle.

FICO Ranges and What They Mean

Common FICO Myths

Your FICO Score is personal, not tied to your LLC. Your business LLC builds its own separate credit profile (Dun & Bradstreet number, business payment history). Many new business owners assume a high personal FICO means automatic business credit; it does not. Both matter, and they develop independently.

Checking your own credit does not hurt your FICO. Soft inquiries (when you look at your own score) have zero impact. Only hard inquiries (when a lender checks your score after you apply) may lower it by a few points.

Closing old credit cards does not always help. Closing a card can reduce your available credit and shorten your average account age, both of which can lower your score. Keep old accounts open if possible.

Next Steps

As a non-US founder, your FICO journey starts with US identification and a credit account. Once your LLC, ITIN, and bank account are live, apply for a small credit card and use it consistently. Pay on time, every time. Within 6-12 months, you will have a measurable FICO score. Within 18-24 months, you will have real leverage for better business credit products.

Frequently asked questions