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:
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.
|
|
|
|
|
|
|
New Credit Advice: Dont Pay off Those Credit Cards!
Credit needed for real estate mortgage financing differs from credit... Read More
Is it Safe to Use Online Car Finance?
Online car finance is convenient. You can apply over the... Read More
Why Should You Use Credit Cards
Believe it or not, the way society, especially the commercial... Read More
Student Credit Cards 101
Almost all students have and use student credit cards. Some... Read More
Maximizing Credit Card Rewards
We spend money every single day on many different types... Read More
Cash Advance ? How Does It Work?
If you want a cash advance or a payday/paycheck loan,... Read More
How To Use Your Credit Cards Wisely
Are you one of the thousands pulling your hair out... Read More
Five Reasons to Repair Your Credit Score - You Can Do It Yourself
There are multiple reasons that tell us why we should... Read More
First Major Regulatory and Legislative Victory of 2005 for Creditors and Consumers
Under the Fair Debt Collection Practices Act, collectors are not... Read More
How To Prevent Fraudulent Credit Card Transactions
What Are Possible Signs of Fraudulent Transactions see at Web... Read More
Protect Yourself Against Identity Theft
Identity theft is when someone uses, without permission, your personal... Read More
How to Repair a Bad Credit Rating
If you have a bad credit rating, then you might... Read More
3 Free Credit Reports For You
If you were to tell someone that they can have... Read More
Your Credit Card May Be Costing More Than You Think!
Do you know what your credit card is truly costing... Read More
Commercial Collections: Business Finance Booster Shot
Commercial collections: fixture of the new B2B cultureIf you're in... Read More
How Healthy Is Your Credit
There's only one way to discover the "health" of your... Read More
How Your Credit Rating Affects You, and How to Check It
You might not know it, but every time you take... Read More
A Summary of the Fair Credit Reporting Act
This summary of the Fair Credit Reporting Act will explain... Read More
Triple AAA in 30 Days
Have you ever wonder about how to get good credit... Read More
Easing Your Financial Burdens With Credit Counseling
It is a well-publicized fact that more of us are... Read More
Beware of Bogus Credit Repair Companies!
So-called "credit repair" companies claim they can remove negative information... Read More
Top 5 Reasons To Check Your Credit Report Regularly
#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More
What is Credit Counselling?
Ever wondered what is Credit Counselling? There are occasions when... Read More
Legislators Ponder New Credit Protection Laws
Legislators in Washington, D.C. are considering several credit-related consumer protections... Read More
Low Interest Credit Cards: A Thing of the Past?
With interest rates rising, low or zero percent credit cards... Read More
Credit Report ? How Your Credit Score is Determined
Most consumers are aware that they have something known as... Read More
Bad Credit Loans For Those Who Seek Alternatives for New or Old Car
You can still save money on a Bad Credit Loan... Read More
Negotiating Rates with Your Credit Card Company
Ok, let's face it, everybody hates high credit card rates,... Read More
Searching For A Low Interest Credit Card?
These days, people need to very carefully consider what type... Read More
Do You Know Whats On Your Credit Report ?
It is important to know your credit rating for a... Read More
What You Need to Know About Interest Rates
For all people shop around for the best rate, there... Read More
The Top 5 Secrets to Managing Your Credit Cards?So They Won?t Manage You
You've probably never heard of Frank X. McNamara, but he... Read More
It Takes Credit To Build Credit
Using a credit card wisely is an important step in... Read More
Practical Suggestions for Protecting Yourself From Identity Theft
It's no surprise that thousands of Americans are victimized by... Read More
How To Get a Low Interest Credit Card
Consumers often have the first credit card that they ever... Read More
How To Establish Great Credit
Building a good credit history is important. If you have... Read More
How To Protect Yourself Against Credit Card Fraud
In the high tech world of today, credit card fraud... Read More
Credit Cards - Why Prepay?
With prepaid credit cards, you get the practicality of plastic... Read More
4 Steps to Creating Good Credit
As a consumer you've learned the importance of establishing a... Read More
What To Look For In A Credit Card
When you are deciding what type of credit card to... Read More
10 Tips To Prevent Credit Card Fraud
Imagine opening your credit card statement one morning and discovering... Read More
What Does Your Credit Say About You?
A credit report is more than just a snapshot of... Read More
Balance Transfers Can Help You Stop Putting Money Down The Drain!
As you probably know, interest rates are at all time... Read More
Finding What is on Your Credit Report
A credit report is basically a file about you kept... Read More
Credit Card Balance Transfers Can Help You Stop Putting Money Down The Drain
As you probably know, interest rates are at all time... Read More
UPS Delivers the Goods, Your Identity
Well now we add CitiGroup and UPS to the Identity... Read More
What is Credit Repair and How Can It Help You?
There are millions of consumer credit reports on file from... Read More
Choosing the Best Low Interest Credit Card
With so many low interest credit cards on offer, how... Read More
A Summary of the Fair Credit Reporting Act
This summary of the Fair Credit Reporting Act will explain... Read More
Credit and Its Cost
What is Credit? Credit is money granted by a lender... Read More
Start Building Credit Fast!
There are a couple of reasons for this. You can... Read More
Rate Tarts Losing Ability to Cherry Pick
A "rate tart" is someone who switches from one zero... Read More
Trying to Land a Job? Poor Credit Scores May Hurt Your Chances
Many employers are now looking at an applicant's credit report... Read More
Are 0% Credit Cards Reaching Their End?
Are Credit Card companies starting to feel the pinch? We... Read More
Credit Damage: Getting Compensated for Your Loss
Until recently lawyers for victims of credit damage had little... Read More
Types of Credit Cards
There are a whole variety of different types of credit... Read More
Credit Counseling Basics
Credit counseling is an option you might want to consider... Read More
The Hitchhiker?s Guide To Insanity
A new sickness is plaguing the UK called Denial. Denial... Read More
Online, Phone, U.S. Mail or In-Person: Where is Your Credit Card and Personal Identify Safest?
Identity theft is the fastest growing crime according to the... Read More
Free Credit Reports Now Available From the FTC
The Federal Trade Commission (FTC) has set up a new... Read More
SuperCharged Secret 2, Credit Card Utopia
INTEREST BEWARE, THERE'S SAFETY IN NUMBERS!Note: The following is part... Read More
Low Interest Credit Cards Have Many Advantages
When credit cards are used wisely they can be very... Read More
Credit Cards and How To Choose Them:
It may seem like a simple question but its important... Read More
Common Credit Score Myths
A lot of credit score myths about fico score ratings... Read More
New Credit Advice: Dont Pay off Those Credit Cards!
Credit needed for real estate mortgage financing differs from credit... Read More
Fight Credit Card Fraud with Common Sense
By now, you have undoubtedly heard of credit card fraud,... Read More
Credit |