What is a FICO score?
A FICO score is a credit score developed by Fair Isaac & Company. It is a credit scoring method to determine the likelihood of credit users paying their bills. Since the 1950s, Fair Issac & Co were pioneers in setting credit scoring standards and even today their method has become the most widely accepted and reliable scoring method used by lenders in credit evaluation. A credit score attempts to condense your credit history into a single number. Credit scores analyze your credit history by considering numerous factors such as: • Late payments • The amount of time credit has been established • The amount of credit used versus the amount of credit available • Length of time at present residence • Employment history • Negative credit information such as bankruptcies, charge-offs, collections, liens, etc. Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance.
A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Credit scoring is widely accepted by lenders as a reliable means of credit evaluation. Credit scores analyze a borrower’s credit history considering numerous factors such as: • Late payments • The amount of time credit has been established • The amount of credit used versus the amount of credit available • Length of time at present residence • Negative credit information such as bankruptcies, charge-offs, collections, etc. To obtain a copy of your credit report, contact any of these credit-reporting agencies: • Experian, www.experian.com • Trans Union LLC, www.transunion.com • Equifax www.equifax.
Also known as a credit score, your FICO score is the numeric representation of your financial responsibility based on your credit history. Each credit bureau creates its own FICO score for you on a scale of 300 850 based on your credit information. The three FICO scores are the measure that most lenders look to when evaluating whether to approve you for credit. Your FICO score is created from the information that each individual credit bureau reports, so your score may be higher or lower at each of the three major credit bureaus depending upon their information. As your credit information changes your FICO score will go up or down depending on the information that has changed. Raising your FICO score a couple of points can result savings of thousands of dollars due to the lowering of your interest rates on new loans and can make the difference in whether you are approved in the first place. FICO scores provide information to the lender that allows them to evaluate the future risk of le
A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its pioneering work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrowers credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable. Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance. Developing these models involves studying how thousands, even millions, of people have used credit. Score-model developers find predictive factors in the data that have proven to indicate future credit performance.
