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Understanding Your FICO Score

Understanding Your FICO Score The following factors determine FICO scores: 1. Payment History - 35% 5, 1 4. 2. Debt/Amounts Owed - 30% 3. Age of Credit History - 15% 4. New Credit/Inquiries - 10% 5. Variety of Credit - 10% FICO scores can range from 300 to 850: 720-850 is considered excellent. About 37 percent of Americans had "excellent" credit scores in 2012 720-850 680-719 680-719 is considered good. These individuals can qualify for better loans and credit cards 620-679 620-679 is considered fair/average. These individuals often have some issues with credit card debt 300-619 300-619 is considered These poor. individuals pay much higher interest rates due to past bankruptcy or other financial issues How to improve one's credit score: 1. Check your credit report for errorS 2. Reduce any outstanding debt that you may have 3. Make all of your future payments on time Castle & Cooke MORTGAGE, LLC NMLS #1251 http://www.credit.com/credit-scores/what-does-fico-stand-for-and-what-is-a-fico-credit-score/ http://www.myfico.com/crediteducation/creditscores.aspx To get a FREE copy of your credit report with the 3 bureaus once per year, visit: www.annualcreditreport.com

Understanding Your FICO Score

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Many who are looking to purchase a home remain focused on only one thing when they go to visit mortgage companies for the first time – the amount of money they have saved for a down payment. While t... hat money is very important, another factor that is often overlooked (and has a very important impact on whether buyers can secure a loan) is an individual’s FICO score. A FICO score is determined based on an individual’s credit information. FICO then uses analytics to predict the individual’s behavior, which lenders use to determine whether or not someone can qualify for a loan or not. Here’s a brief overview of how FICO scores are determined and what the score ranges mean.