What's A FICO Score | What Factors Influence FICO Scores?

What's A FICO Score…..exactly?

Many people do not understand about how credit scores work. They may ask, ‘What's a Fico score’?

The borrowers score is calculated by using the credit information on their credit report.

FICO scores are based solely on credit information, and cannot be judged on race, religion, marital status, gender, or nationality.

Since your credit rating changes, a Fico score can fluctuate.

The Fico score is calculated based on numerical values for different credit characteristics.

The higher the Fico score is, the better chance you will have of getting credit with lower interest rates.

Items on your credit report that can lower your Fico score:

Your overall use of credit is the key when determining your Fico score.

The factors with the worst outcomes are: collections, judgments, late payments, bankruptcies, too few or too many revolving accounts, current balances, finance company accounts, collections, the number of credit inquiries made, and the number of accounts opened in the past year.

One late payment will not ruin your credit score, a history of many late payments and high credit balances will have a negative effect on your Fico score. You will need to obtain your credit report to make sure some of these negative items are correct. Your credit report can contain errors which will impact your Fico score even though they are not yours. You will need to work to get these false credit items off of your credit report.