Friday, April 24, 2009

FICO score what is it ?

FICO stands for Fair Isaac Credit Operations. Now what does this mean to you ? It determines you credit score which in turns allows you to get credit at the interest rate set by the creditor.


A score can range from 0-900.Some places even say 0-850 . The most acceptable score is above 700.If it falls below 700 you may still get the credit but you will pay a higher interest rate.

How are your scores determined ? They are grouped into 5 categories. Each category make up a percentage of your score.

35 % Payment History
30% Amounts Owed
15% Length of Credit History
10 % Types of Credit Used
10 % New Credit

100 = Your Credit Score

1 comment:

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