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FICO Score

Posted on August 10th, 2010 | admin

What Is The Point of A FICO Score?

Your FICO score, also called a credit bureau score, is used by companies to determine your creditworthiness. A FICO score can range from 350-850, with a higher score being better than a lower score. Every person has three FICO scores – one from TransUnion, one from Experian, and one from Equifax. These three credit bureaus may contain varying information, so for a true reflection of your FICO score, you should check all three.

A “good” FICO score tends to be above 700. A “very poor” FICO score would be below 560. Many places, such as car dealerships, won’t even continue discussing loans with you if your FICO score is below 600.

What factors influence my FICO score?

  • Length of time you’ve had credit. At least 7 years worth of credit history is optimal for a better FICO score.
  • Late payments or on time payments.
  • Proportion of balances on credit cards (try to keep your balances below 50% of your credit limit).
  • Type of credit you have. If all of your credit is unsecured, you are viewed as a higher risk
  • Judgments, foreclosures, and liens all lower your FICO score.
  • Number of recent inquiries on your credit reports. If you have multiple inquiries, it can lower your FICO score.
  • What factors do not influence my FICO score?

    Age, sex, religion, marital status, income, employment history, and geographic location are not factors that influence your FICO score.

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