FICO Credit Score

FICO credit score from the Fair Isaac Company is the most widely used credit scoring system. The FICO credit score is a number lenders use to help them decide whether or not you should be considered credit worthy. A FICO score is a snapshot of your credit risk picture at a particular point in time. The higher your FICO credit score, the lower the risk to lenders. Fair, Isaac and Company Inc. develops the mathematical formulas used to produce FICO scores.

There are several things you can do to raise your FICO credit score. Your FICO credit score analysis will suggest things you can do to improve your score over time. Generally, people with a high FICO credit score consistently:

• Pay bills on time.
• Keep balances low on credit cards and other revolving credit products.
• Apply for and open new credit accounts only as needed

The FICO credit score considers five main kinds of credit information. Listed from most important to least important, these are:

• Payment history.
• Amount owed.
• Length of credit history.
• New credit.
• Types of credit in use.

Why Is Your FICO Credit Score Important?

You can get your FICO credit score from your Equifax credit report. A FICO credit score ranges from 300 to 850. The higher the FICO credit score, the lower the predicted credit risk for lenders. A FICO score provides an extremely valuable guide to future risk based solely on credit report data. The higher the consumer’s score, the lower the risk to lenders when extending new credit to that consumer. Sound like the same thing? Well that’s just to show you that your FICO credit score is really important. Find out what your FICO credit score says about you.