FICO is actually the name of a company (it’s an abbreviation; the company was formerly known as the Fair, Isaac Corporation, founded by an engineer, Bill Fair and a mathematician, Earl Isaac. FICO is a company which specializes in credit scoring and other analytics for financial services providers. Consequently, consumer credit scores are generally referred to as FICO scores, even when scores are actually provided to consumers or potential creditors by another entity. FICO has its own proprietary formula for computing credit scores, although it is known that payment history, length of credit history and credit utilization are all factors which go into computing this score. Understanding these factors and how they affect your credit rating is vital to your ability to secure a mortgage, auto loan or any other kind of financing. Too low of a score and you may find it all but impossible to get a loan of any kind; or at least, any loan you’ll be offered will be on exceptionally unfavorable terms, especially in regards to interest rates.
Posted on: Wed, 04 Dec 2013 19:15:04 +0000
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