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Facts About Your FICO Credit Score

Your FICO credit score TOPIO CREDIT REPAIR COMPANIES FICO stands for Fair Isaac Corporation, which is the company that created the industry standard credit scores used by most lenders. It is a number generated by a mathematical algorithm based on information in your credit report, compared to information on tens of millions of other people. The resulting number is a highly accurate prediction of how likely you are to pay your bills. What's in my FICO Score / How is my FICO Score calculated? The FICO® Score is calculated from data in your credit report. This data is grouped into five. The percentages reflect how bearing each area has on how your FICO Score is calculated. Your FICO Score considers both positive and negative information in your credit report. Late payments will lower your FICO Score, but establishing or re-establishing a good track record of making payments on time will raise your score. YOUR FICO CREDIT SCORE IS CALCULATED BASED ON 5 CATEGORIES. NEW CREDIT Research shows that opening several credit accounts in a short period of time represents a greater risk - especially for people who don't have a long credit history. PAYMENT HISTORY TYPES OF CREDIT IN USE• 10% The first thing any lender wants to know is whether you've paid past credit accounts on time. The score will consider your mix of credit cards, retail 10% accounts, installment loans, This is one of the most finance company accounts and mortgage loans. important factors in a FICO® 35% Score. 15% LENGTH OF CREDIT HISTORY In general, a longer credit history will increase your FICO® Score. However, even people who haven't been using credit AMOUNTS OWED 30% Having credit accounts and owing money on them does not necessarily mean you are a high-risk borrower with a low long may have a high FICO Score, depending on how the rest of the credit report looks. FICO® Score. Your FICO Score takes into account how long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts. It factors in how long specific credit accounts have been established, as well as how long it has been since you used certain accounts. The scale runs from 300 to 850 The scale runs from 300 to 850 A score of 720 or higher will get 300. 350 1400 1450 500 550 1600 |700 1750 800 1850 you the best interest rates from lenders. Vast majority of people will have scores between 600 and 800 The American public's credit scores Currently, each of the 900 Credit score three major credit 800 bureaus uses their own 700 version of the FICO 600 scoring method - Equifax has the 500 BEACON score, Experian 400 has the Experian/Fair 300 Isaac Risk Model and TransUnion has the 200 EMPIRICA score. 100 2% 5% 8% 12% 15% 18% 27% 13% Percentage Your FICO Score only looks at information in your credit report Your credit score is calculated from your credit report, but lenders look at many things when. making a credit decision including your income such as how long you have worked at your present job and the kind of credit you are requesting. The following are not considered in a FICO Score: Age > Marital status Race > Whether you've been turned down for credit > Sex > Length of time at your current address Job or length of employment at your job Whether you own a home or rent Any information that is not contained in your credit report Income Education A lender may consider all those factors when deciding whether to approve a loan application, but they aren't part of how a FICO score is calculated. Since lenders can also use their own scoring methods, nothing is guaranteed, but you certainly can't hurt your score by taking any of these steps. Review your credit report and correct any errors you find. Keep old credit accounts, even if you're not using them. Reduce your balances on credit cards to 75 percent or less of your available credit (25% is optimal) Pay your bills on time. Don't let anyone make an inquiry on your credit report unless you absolutely have to. If you are planning on applying for a large loan such as a mortgage, do not open new credit card accounts just to increase your available credit to raise your score. Opening new accounts will have a negative impact at first, but can help boost your FICO score in the long-term. THE EFFECT OF YOUR FICO SCORE If you have ever rented an apartment, bought cell phone service, applied for a job that involved handling a lot of money, or had utilities connected, your credit score has probably been pulled. The difference in the interest rates offered to a person with a score of 520 and a person with a 720 score is 4.36%. On a $100,000, 30-year mortgage, that difference would cost more than $110,325 in extra interest. Your monthly payment would be about $307 higher than it needs to be, in order to offset the lender's "risk". This chart shows an example of how interest rates for a car loan can vary based on your credit score: Auto Loans 500-589 590-624 625-659 660-689 690-719 720-850 36-month 18.597 16.206 12.225 9.498 7.386 6.674 new auto loan 48-month 18.598 16.206 12.226 9.500 7.390 6.678 new auto loan TOPIO ESERA NEAIR ČOMPANIES CAN GIVE YOU THE EXPERT HELP YOU NEED TO GET YOUR CREDIT BACK IN SHAPE! • Above 6. 66/ 750 6. 004 669 099 -49 6+9 009 669 67 009 009 - Below 66

Facts About Your FICO Credit Score

shared by top10creditrepair on May 29
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Millions of Americans are plagued with poor credit scores. Bad credit scores can pose multiple obstacles for the average consumer, due to the hassle brought forth by a looming, low number. Applying fo...


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