Drug testing

What Is A FICO Score?

A credit score is most commonly known as a FICO score. FICO stands for Fair Isaacs Corporation. It's a company that developed the credit scoring software used to evaluate your credit worthiness.

Most lenders use the FICO score to determine whether they should extend to you a mortgage, car loan, credit cards and any other type of credit. The higher your score, the more credit worthy you are. Lenders will know that more than likely, you pay your bills on time. The lower your score, the more risk the lender takes on, guessing that you might not pay the loan on time.

The FICO score ranges from 300 to 850. More than likely, you'll end up paying a larger monthly payment on your mortgage if your score is below 650. Your credit score, according to MyFico.com, is determined by:

  • Payment history-35%
  • Amounts owed-30%
  • Length of credit history-15%
  • New credit-10%
  • And types of credit in use-10%
  • If you don't have any credit, your credit score can be lower than someone who has had a credit history for several years. When you personally check your credit often, this will not affect your credit score. When existing creditors review your credit, these inquiries are not counted in your score.

    Since payment history is 35% of your score, you want to make sure you don't have a history of late payments on your credit report. The longer your credit history, the better. Having too many new credit accounts open can affect your score negatively.

    The bottom line is that a higher FICO score means you are more credit worthy to potential lenders. The lower your score, the greater a risk you are to lenders and therefore, your monthly payments might be higher.

    Michelle Roebuck provides mortgage and home buying advice for people with bad credit at http://www.find-bad-credit-mortgage-loans.com. Sign up for her newsletter at http://www.find-bad-credit-mort gage-loans.com/newsletter.html.

    limousine chicago service
    In The News:

    Bankruptcy vs. Credit Counseling: What Should I Do?

    Credit Counseling and bankruptcy are both ways to relieve the... Read More

    Dealing With and Repairing Bad Credit

    Bad credit can be a burden for otherwise good credit.... Read More

    How To Start A Second SEPERATE Credit File!

    Your personal credit file is separated from those with the... Read More

    Credit Card Dirty Tricks

    There are many of us that have been badly stung... Read More

    Opting For A Credit Card? Check Out Certain Terms

    You've just received a "pre-approved" credit card offer in your... Read More

    Identity Theft ? Monitor Your Credit Report

    The recent security breach at credit card processor CardSystems Solutions... Read More

    ChexSystems: Alternative Options for People Whove Been Checking Accounts

    Individual banks elect to become members of ChexSystems, and to... Read More

    Credit and Banking Money Saving Services

    The first rule when applying for banking and credit services... Read More

    Choosing a Credit Counseling Company

    If you have considered credit counseling as an option to... Read More

    Identity Theft ? How Can You Prevent It Happening to You?

    The nightmare of identity theft strikes an estimated 750,000 people... Read More

    Credit Cards and How To Choose Them:

    It may seem like a simple question but its important... Read More

    A Cure for an Ailing Credit

    Credit has become a much-used word, thanks to the various... Read More

    Know Your Credit Card Rights

    When you apply for a credit card, the application that... Read More

    Credit Reports Inside and Out

    The Credit Report is like your scorecard in the lending... Read More

    4 Steps You Can Take If Your Online Credit Card Application Has Been Refused

    Help! I've Been Turned DownYou received an envelope in the... Read More

    Credit Score ? for Scoring the Right Loan

    Somebody once said, "There is always a way of knowing... Read More

    Credit Counseling: Is it Really Necessary?

    Not everyone has a positive experience with credit counseling. Potential... Read More

    Getting Married? What Are The Finance and Credit Implications?

    There is a big difference between looking after your own... Read More

    Credit Report Hassles

    There is no end to the amount of pain that... Read More

    3 Ways to Improve Your Credit Score by 50 Points In Less Than 30 Days

    In Less Than 30 Days. "What can you do to... Read More

    How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

    Consumers interested in purchasing or refinancing a home will pay... Read More

    Tired Of Being Broke?...Learn How To Force Banks To Give You Money!

    Imagine...obtaining credit that's incredibly easy...opening doors of opportunity you never... Read More

    Like It Or Not, You Have A Score To Settle! Part 1

    Just when most people finish with school and can stop... Read More

    ChexSystems: Who They Are and How it Affects You

    ChexSystems is a company that maintains a subscriber membership service... Read More

    Finance - Money, Money

    Finance is a big word for some of us. It's... Read More

    smart street light street light globes Pete's produce ..