Your FICO score, also known as your credit score, has much to say about you. It can control your financial destiny. Whether you’re able to qualify to finance a car, mortgage a home, or even qualify for monthly billing with your utility companies can be dictated by your FICO score. With all that’s at stake it’s important to understand what goes into computing your individual score and how you can best manage it.
While the exact algorithm for calculating FICO scores is a closely guarded secret, FICO (formerly known as the Fair Isaac Corporation) has disclosed the components to the score. They are as follows:
35%: Payment history
30%: Credit utilization
15%: Length of credit history
10%: Types of credit
10%: Recent searches for credit
If you want to vitally increase your credit score I highly recommend concentrating on the first two areas. Together these two components have the highest weighted impact on your overall score. So let’s delve into what is meant by payment history and credit utilization.
Payment history is simple to understand. Did you pay your bills? Did you pay them on time? That’s pretty much all there is to it. If you want to improve your credit start paying all your bills and debt payments on time. Most people who end up with a less-than-favorable FICO score do so because of late payments.
Credit Utilization is a fancy way of saying that FICO is looking at how much of your available “revolving debt” you’re using. They look at the ratio of how much of your available lines of credit you’re carrying as debt. If you have a $10,000 line of credit or a credit card limit, and you’re only carrying a balance of $3,000, your credit utilization ratio will be much favorable than someone with the same limit carrying an $8,000 balance.
The best way to have a better FICO score: pay all your bills and debt payments on time, and carry a relatively small balance compared to your available credit limit.
IS FICO AND CREDIT SCORE THE SAME THING? IS FICO AND CREDIT SCORE THE SAME THING?
Which action will help increase a low FICO score?
FICO score for mortgageDepends on your definition of "good". You can get a mortgage with 686 score. FICO score over 720 will get you the best mortgage rate.
A beacon score is just the name given to the equifax branded FICO score. So your FICO score and beacon score will be the same if your FICO score is pulled using your equifax credit report.
A FICO score is obtained with information taken from a person's available credit information. The score is sold by the FICO Company to interested financial institutions.
Approximately 20% of borrowers have a FICO score greater than 740.
900 Sorry, 900 is not it Highest FICO score is 850 http://www.myfico.com.
It is hard to qualify for a mortgage with a Fico score of 567. Most lenders, including FHA, require individuals to have a minimum Fico score of 580 to qualify for a mortgage.
The best place to go on the internet for information regarding their FICO score is the website called myFICO. The site provides everything one would need to know about their FICO score.
the only way to get your FICO score if to access your credit report if they can get your report they can get your score. check out www.thecreditguy.tv for more information
The FICO score ranges between 300 - 850.
You can obtain your FICO score by requesting it from one of the three major credit bureaus - Equifax, Experian, or TransUnion. You can also check your FICO score through various online services and financial institutions.