A FICO score is a credit score developed by FICO, (Fair Isaac Co.) a company that specializes in what’s known as “predictive analytics,” which means they take information and analyze it to predict what’s likely to happen. In other words, how likely is it that you will pay your bills.
FICO uses information provided by the three major credit reporting agencies – Equifax, Experian or TransUnion. However, FICO itself is not a credit reporting agency.
The FICO score range is 300 – 850 with, of course, the higher number representing less risk. The higher the number, the more favorable interest rate you are likely to get from the lender.
The score breaks down into these categories:
Payment History (35%): How you have paid credit cards, retail accounts, installment loans, etc. They also want to know if you have any collections, late payments, bankruptcies.
Debt/Amounts Owed (30%): What you owe, types of accounts and how many. The percentage of the credit line you typically use. (Recommended to stay under 30%)
Age of Credit History (15%): How long the account has been open, type and account activity.
New Credit/Inquiries (10%): Number and proportion of recently opened accounts and recent credit inquiries. Time since opening and credit inquiries. Is this a re-establishment of positive credit history following past payment problems?
Mix of Account Types of Credit (10%): Number of and recent information on all the various types of accounts you use.
Author:Victor DeFrisco Phone: 561-951-3759 Dated: August 3rd 2016 Views: 154 About Victor: ...
View our latest blog posts in your RSS reader. Click here to access.
We are a full service real estate brokerage with over 100 agents to serve you. Let us be your real estate resource. Regardless whether you need to buy or sell now, or sometime in the future, let us help you. We are no pressure and will always try and help. Contact us at 561-792-3948 now.
GET READY FOR TAX SEASON!Recommended apps to help you with organi
"When I sold my home I interviewed many Companies. Knowing most buyers come from the internet I was looking for a Company with a strong internet presence. I googled some terms like, "Lake Worth Homes For Sale" and "homes for sale in Lake Worth", and almost every time Exit Realty Premier was on the first page of Google. Then when I met with the agent from Exit Realty Premier and saw the HD photographs, aerial photos, on line visual tours and videos and all the technology I was sold. I signed with them and sold my home in record time, for the price I wanted and had a smooth quick closing. My agent was very professional and knowledgeable and kept me informed every step of the way.