What is a FICO score?
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 & Co. 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 borrower’s 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. For more information on credit visit the Articles page of this website.
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 & Company 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.
The FICO score is a score that is used by most lenders to determine your creditworthiness. The score is a collection of data from all three credit bureaus. There are different names given to this score at each bureau: Equifax uses the name: Beacon Score Trans Union uses the name: Empirica Experian uses the name: Fair Issac The factors used to determine your scores with any given bureau are: How you have previously paid your debts The different types of credit your have had in the past How often you have applied for new credit (inquiries) How long your credit accounts have been open How much you owe on credit If you have negative items – how recent they are How late are your late payments – 30, 60, 90 days late How many of your credit accounts became delinquent compared to how many did not show delinquency. All of these factors are taken into consideration when your FICO score in calculated. Not all inquires will be a factor in figuring your FICO, mainly the ones that are being used for
A FICO score is a credit scoring system determined by certain credit reporting repositories, and used by many mortgage companies to determine creditworthiness of an individual. The FICO score is determined by a formula that considers a persons past payment history, amount of available credit on revolving accounts vs. amount of debt, public record filings (bankruptcy, law suits, liens, judgements, divorce, etc.), number of recent inquiries, and other factors. Many mortgage companies have different FICO score requirements for certain programs.
