Even if you’re not a financial expert, you probably realize that certain factors will play a big part in both your financial prosperity. Credit FICO scores and other financial jargon have become hot topics in the last few years. Since many don’t understand their credit FICO score or how to increase it, they do not understand what is happening to them financially. Luckily, your first step, finding out what your credit FICO score is, is now easier to do than it was a few years ago.
What is the definition of a credit FICO score?
Many people are aware of their credit score, but they do not know how it came about or even the full form of FICO. The creator of the score is Fair Isaac & Company, which came about when it was recognized early on that lenders needed a better way to evaluate potential borrowers. The system was devised to allow an assigned number to reflect spending and payment patterns.
How is the credit FICO score calculated?
There are many people who have received copies of their FICO score report and been unable to understand what it means or how it’s formulated. For better or worse, many people find themselves in this situation just as you have. Five primary specifics are used to calculate your FICO score for all intent and purposes. They look at other things, as well, but the following five things are the primary indicators that a person is going to be able to repay their bills on time.
The amounts of late payments and how often they occur Time length of established credit How much available credit is remaining in their credit line How long a person has lived at their current address Negative strikes against you (bankruptcy, foreclosures, or collections, late payments etc)
What is the process to obtain my credit FICO score?
Thankfully, there are many ways to get your FICO score. The three main credit reporting bureaus all offer this number with their credit reports, but the number might not be consistent. Your credit FICO score can, and often does, vary from one reporting agency to the next. All of the numbers could be used, or possibly just the median depending on the type of loan you are trying to get.
Ask one of the three major credit reporting bureaus for your credit FICO score. Be sure to specifically ask that your FICO score be included in your credit report or you may discover that this important information is missing. A person can choose to view his credit report online or can request the information to be sent to his home mailing address.
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