What is a FICO score?
A FICO score is your credit score that was developed by Fair Isaac & Co., and it is a method of determining whether it is likely that you will pay your bills. It began in the 1950’s and has become a reliable means used by lenders to evaluate credit of potential borrowers. Credit scores are calculated by scoring models and mathematical tables that assign points for different pieces of your credit information. The credit bureau models have been developed from information in consumer credit bureau reports. Some of your credit history factors include: • Late Payments • Amount of time credit has been established • Amount of credit used vs. amount of credit available • Time at current residence • Employment history • Negative credit information such as bankruptcies, charge-offs, collections, etc.
A 16: A rating system created by the Fair Isaac Corporation (FICO). FICO scores are based on information reported in consumer credit files. The formula used for FICO scores creates a standardized rating of a borrower’s credit history. A credit score is a numerical index which represents an estimate of an individual’s financial creditworthiness. It is based on a subset of the information in an individual’s credit report. Lenders, such as banks and credit card companies, use credit scores to determine credit limits and interest rates.
A. A FICO score is a credit score developed by Fair Isaac & Co. A reliable evaluation that condenses a borrowers credit history into a single number. Credit scores includes such factors as: • Late payments • The amount of time credit has been established • The amount of credit used vs. the amount of credit available • Length of time at present residence • Employment history • Negative credit-bankruptcies, collections etc… There are 3 FICO scores provided by 3 credit bureaus: Experian, Trans Union and Equifax on a credit report, the middle score being the average.
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. It’s a 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 the number that represents your credit rating. The FICO rating system was developed by Fair Isaac Corporation and is used by all three of the major credit bureaus: Equifax, Experian and TransUnion. FICO is considered the industry standard for most lenders. Your credit score affects what loans are available to you and the interest rates and other terms at which the loans are made. Lenders may look at a variety of factors when providing a loan such as employment history, income and amount of debt, however the credit score is very important in the equation. Each person has three different FICO scores; each of the three major credit bureaus assigns a FICO score to each consumer. These FICO scores vary based on the information provided to the individual reporting agencies and the way that bureau collects the information in your credit report.
