A FICO score is the most widely used credit scoring system. FICO is an acronym for Fair Isaac Corporation, the company that provides the credit score model to financial institutions. You can typically keep your FICO high by maintaining a long history of always paying your bills on time and not having too much debt to income ratio the same way you will do for your credit score. Your FICO plays a large role in a lenders decision when purchasing an home, car, etc... For example, borrowers with a FICO score that is under 600 will be unable to receive a prime mortgage and will typically need to go to a subprime lender for a subprime mortgage, which has a much higher interest rate. FICO scores range from 300-850. A FICO above 700 means you are a solid credit risk and anything over 740 is excellent when it comes to FICO scores. To be eligible for the lowest rate on your credit cards and other loans you normally need to have a FICO score that is in the range of (740-850). Once you drop around 680ish you are a risk in the lenders mind so your rates will be much higher than someone with an higher FICO score. Want to know your FICO???? Go to myfico Most banks pull your FICO score.
Posted on: Wed, 20 Aug 2014 00:05:03 +0000
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