Most consumers are aware that they have something known as a credit report that is used to determine whether or not they would qualify for a loan. Fewer are familiar with the FICO score, a creation of the Fair, Isaac, and Co. which distills their entire credit report down to a three-digit numeral. What, exactly, is this score? How is it compiled? Can anything be done to improve it?
The FICO credit score is used by all three major credit bureaus ? Experian, Trans Union and Equifax. They are the companies that keep track of the credit and lending transactions of millions of Americans. The score is used to provide, in a nutshell, a figure that represents the credit-worthiness of a consumer. That score, which ranges from a low of 300 to a high of 850, is used in many ways by businesses and employers. The score is used by insurance companies to set rates, landlords to establish security deposits, and even prospective employers to determine whether hiring someone is a good risk. Despite the importance of credit scores in their lives, few Americans understand how it works.
The score is determined by a variety of factors, each of which makes up a portion of the score:
By seeing how a credit score is compiled, consumers can take action to keep their scores healthy. A good score helps borrower obtain loans at better interest rates, and that is something that everyone can appreciate.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity lending.
In order to determine a consumer's credit worthiness, creditors and... Read More
What FACTA means is that if you, as an individual,... Read More
What is a balance transfer ? A balance transfer can... Read More
A recent amendment to the federal Fair Credit Reporting Act... Read More
There are times when you may be turned down for... Read More
Have you ever looked at your credit card statement? I'm... Read More
In this week's article, I am going to offer some... Read More
Virtually all consumers will have a credit card at some... Read More
What is a balance transfer?A balance transfer can be explained... Read More
You hear people talk about credit reports all the time... Read More
Credit card debts problem is extremely common today. It is... Read More
You might not know it, but every time you take... Read More
A lot of credit score myths about fico score ratings... Read More
Because most of us have one or two credit cards... Read More
Why do some people get offers for pre-approved credit cards... Read More
Did you know that you could make sure to get... Read More
Your credit score may just be a little number, but... Read More
There are not many of us who do not have... Read More
Credit cards represent an important part of our financial lives.... Read More
Your credit file may not reflect all your credit accounts.... Read More
When you apply for credit, those lending you the money... Read More
Let's face it, if you are facing the possibilities of... Read More
Almost all students have and use student credit cards. Some... Read More
ChexSystems is a company that maintains a subscriber membership service... Read More
In their quest to get you to sign up for... Read More
In "Become the Squeaky Wheel" a book recently published, Michelle... Read More
Using a credit card wisely is an important step in... Read More
Credit scores: all lenders use credit scores to determine interest... Read More
Will lenders really love you for having a good credit... Read More
In the olden days, about 10 years ago, before the... Read More
As of Thursday, December 1, 2004, one-third of Americans will... Read More
There are times when you may be turned down for... Read More
If you have never heard of a FICO score before,... Read More
A credit score is most commonly known as a FICO... Read More
There is no end to the amount of pain that... Read More
Credit card companies want your business. After all, lending money... Read More
When you're dealing with credit cards, you're playing with fire.... Read More
If you want a cash advance or a payday/paycheck loan,... Read More
Like It Or Not, You Have A Score To Settle!... Read More
If you're like most people, you probably own at least... Read More
If you opened a credit card statement recently and were... Read More
Finance is a big word for some of us. It's... Read More
A line of credit, roughly defined, is the amount of... Read More
The Credit Report is like your scorecard in the lending... Read More
Are Credit Card companies starting to feel the pinch? We... Read More
Your credit is the most important thing you have other... Read More
Many credit card holders sign up for a credit account... Read More
Identity theft is a growing concern among Americans, and rates... Read More
A bad credit history can sometimes seem like a curse...... Read More
Are you one of the thousands pulling your hair out... Read More
Have you ever looked at your credit card statement and... Read More
Identity theft statistics are shocking. And we are told that... Read More
LIVING IN CREDIT CARD UTOPIALet's just take a brief moment... Read More
A lot of people spend more money than they can... Read More
The economic downturn of the last five years has affected... Read More
Secured and unsecured debt - what's the difference?It's easy to... Read More
With today's credit card companies, there are many opportunities to... Read More
One of the great mysteries of life is how the... Read More
Your credit history is an important aspect of your life.... Read More
A good credit reward card can contribute to your retirement... Read More
In industrialized nations, going into debt starts early. It's easy... Read More
Prepaid credit cards also called stored value card can be... Read More
There are three major factors that affect how much you... Read More
"I think money was stolen from my card" or "I... Read More
For years, major credit card companies have allowed cardholders to... Read More
Until recently lawyers for victims of credit damage had little... Read More
Credit |