What is my credit score and what is a FICO?
Your FICO score is the dominant method lenders use to assess how deserving you are of their credit. Whether you’re looking to get a mortgage, car loan or home-equity loan, you’re going to get scored. Named after Fair Isaac Corp., the firm that developed the scoring model used by the three major credit bureaus — Equifax, Experian and Trans Union — your FICO score is calculated using a computer model that compares the information in your credit report to what’s on the credit reports of thousands of other customers. FICO scores range from about 300 to 900. Generally, the higher the score, the lower the credit risk. It’s very difficult to say what’s a “good” or “bad” score, though, since lenders have different standards for how much risk they will accept. “A credit score that one lender considers satisfactory may be regarded as unsatisfactory by other lenders for comparable credit instruments,” says Fair, Isaac Senior VP Cheryl St. John.Scores also fluctuate depending on credit activity.
