FICO Score
July 17th, 2010
All consumers with a credit history also have a Credit Score. Fair Isaac Corporation pioneered the use of credit scores, and its FICO score is the one most lenders use.
What is a FICO Score?
A FICO score is a three-digit number between 300 and 850. The higher the FICO score, the better, and anything over 700 is typically considered �good� credit. The FICO score takes into account various information on your Credit Report and is calculated using top-secret algorithms.
What are important factors affecting your FICO score or your credit score?
Fair Isaac Corporation tells us is the importance of certain information to your credit score or FICO score:
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Payment history is the most important factor
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Second most important is your amounts owed
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Third is your length of credit history
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Then new credit and types of credit used
Click here to read about Credit Scoring
How to improve my FICO score or credit score?
The best way to improve your FICO score or credit score is to make all of your payments on time and in full, and to pay down your balances.
The interesting thing about credit scoring is that it doesn’t take your income into account. Therefore a multimillionaire may have a credit score of 400 and a minimum-wage truck-stop waitress may have a credit score of 800. It all depends on how they pay their bills.
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