FICO CREDIT SCORES

Fico scores are those mysterious numbers that determine the type of financing you will get and at what interest rate. In today’s lending they are the most vital numbers but also the most misunderstood. Fico scores range from 400 to 800 and are graded by mortgage lenders when evaluating a loan. These three digit numbers are a mathematical model of a borrower’s risk.

Each of the three major credit bureaus run your individual credit data thru their scoring system to determine what your score will be based on your credit history. Your score is affected by factors such as derogatory information, your current outstanding accounts and their balances; your credit history and repayment habits and your overall use of credit.

Once the data is gathered and sent thru each of the three major credit repositories systems a score is produced from each of the three repositories Fair Issac, Equifax and Trans Union.

Credit scores are not a perfect science, but it is a determining factor to whether or not you would be a good credit risk based on your overall credit history. Often times there is incorrect information on your credit report that adversely affects your score. If you find this to be true you can contact any of the three major credit reporting bureaus and have the information investigated.