F.I.C.O.

Fair Isaac Corporation

WHAT IS A FICO SCORE USED FOR?

When a consumer applies for credit – whether for a credit card, an auto loan, or a mortgage – lenders want to know what risk they'd take by loaning money. A credit score helps lenders evaluate a credit report because it is a number that summarizes credit risk.

WHAT MAKES UP YOUR FICO SCORE?

  • New Credit- 10%
  • Length of Credit History- 15%
  • Credit mix- 10%
  • Payment History- 35%
  • Accounts Owned- 30%

WHAT IS THE RANGE FOR A FICO SCORE?

  • Base scores range from 300-850
  • Higher is better
  • Having no credit history can be a red flag!

WHAT CAN AFFECT YOUR SCORE?

RAISING YOUR SCORE

  • Check your limits- Make sure your reported credit limits are current vs. lower than they actually are
  • Get a credit card- Having one or two pieces of plastic will do good things to your score – if you don’t charge too much and if you pay your bills on time. In other words, be a responsible user of credit.
  • Dispute errors- Mistakes happen. You can dispute errors online through Equifax, Experian, and TransUnion.