What Is A Credit Score Known As Fico Score
A FICO score is a credit score developed by Fair
Isaac & Co. Credit scoring is a method of determining the likelihood
that credit users will pay their bills. Fair, Isaac began its
pioneering work with credit scoring in the late 1950s and, since
then, scoring has become widely accepted by lenders as a reliable
means of credit evaluation.
Credit scores are calculated by using scoring
models and mathematical tables that assign points for different
pieces of information which best predict future credit performance.
Developing these models involves studying how thousands, even
millions, of people have used credit. Score-model developers find
predictive factors in the data that have proven to indicate future
credit performance. Compare your
FICO score.
Negative credit information
such as bankruptcies,
charge-offs and collections hurt your credit score. You can check
your own credit anytime you wish without impacting the score.
Without your credit report you are running blind.
There are really three FICO scores computed by
data provided by each of the three bureaus----Experian, Trans Union
and Equifax.
How can I increase my score?
Pay your bills on time.
Do not apply for credit frequently.
Reduce your credit-card balances.
If you have limited credit, obtain additional
credit.
What if there is an error on my credit report? If
you see an error on your report, report it to the credit bureau.
Find out how to do all this! |
