How does the FICO scoring method works?
There seem to be many explanations and theories about how the FICA works. I’m not sure anyone, even those who make the rules up, thoroughly understand them. When I was mortgage shopping, my brokers, who happen to be friends, told me that you just never know what item or situation will work for or against you. Too much debt, sure, that’s bad, but did you realize you can have too little debt, too? Have a credit card with no balance owed on it? Good for you, right? Wrong. It can be viewed as a negative, ie debt you can stack up fast. Pay off a credit card early? Good? Maybe, maybe not. Just lots of variables. One of the best sites I’ve ever found, however, for advice and info is www.fool.com I’m not sure if it’s free anymore, but there is a discussion forum that is worth anything they could charge you to join if you have genuine questions. A simplistic explanation, however, is that they have a check sheet of plus and minus situations that they tally up and then, hopefully, look at individ
