What is the FICO Score?
The FICO score is the score created by the Fair Isaac Corporation for each of the 3 major credit bureaus. The FICO score is the the score used by most lenders and creditors to gauge weather how "credit worthy" an individual is.
What is a good score?
350-620 Poor Credit (in other words - hurting!)
620-660 You will be extended Sub-Prime financing.
660-720 This is Average, but you will still be assessed higher rates.
720-750 This is Excellent. We all aspire to this.
750 + Champaign pours from the heavens. This would be a perfect score.
Credit Score Breakdown
Although the exact formula for what determines your Fico score is secret, this basic structure outlines generally what criteria makes up your score. Figure 1 is a graphical breakdown of your scores.
How are the scores calculated? (source from FICO.org)
35% of your score is based on Payment History.
30% of your score is based on Amounts you owe.
15% of your score is based on Credit History
10% of your score is based on New Credit (new accounts and recent requests)
10% of your score is based on Credit in Use (types of credit - mortgages, auto loans, credit cards, etc.)
Credit Score Articles
- Bad Credit Repair
- Refinancing and your Credit Score
- Pay for Delete
- Credit Repair Blueprint - Part 1
- Top 5 Credit Repair Myths
- Debt to Credit Ratio
- Credit Monitoring Services - Great tool for Credit Repair
- What is the Credit Secrets Bible?
- Revolving Credit vs Installment Credit
- 3 Bureau Credit Monitoring Reviews
