As I am from the United States did not, I do not know what it means, FICO, and in their impact. FICO representative of Fair Isaac Corporation, headquartered in California. FICO, the company put it simply, a person's credit score. Credit scores can be one on whether to grant credit or not to exclude potential donors, for example, when used for a new credit card or mortgage. Therefore, if you are in the United States, FICO score is very important toTo you.
What does FICO score how to do?
A FICO score attention to your credit account holder or kinds of focus, your credit history in the maintenance of these accounts. FICO score from 300 to 850 scales, the people in the United States within the 600-850 majority.
Factors Affecting Your FICO credit score
There are five factors that determine your FICO credit for allGuests:
1. Your payment history.
This applies to a very important 35 percent - the biggest factor in the FICO score. As expected, pay bills on time, you will get a good result, although the late payments on a consistent basis, you will mark your FICO score. If you have been referred to debt collection agency, which is worse, although bankruptcy is the worst.
2. How much money you owe.
Another obviousFICO factors will be considered in a credit score to reach. This explains another 30% of the total FICO score. It is not only has affected you owe to your FICO score. Also takes into account the amount of credit. For example, if you have a credit limit of 5,000 dollars, but so far only 1,000 yuan, which are covered.
The total amount of your credit, and you are compared toAnnual income. Thus, for example auto loans, loans, mortgages, credit cards, store cards, these are added together. That the majority of the provision of credit or use of all, you will get a part of the FICO score calculation of a lower rating.
3. Length of credit history.
Another important factor, accounting for 15% of the FICO credit score is your credit record length. The longer your credit rating, and better for your FICO score. In addition, a long history, but the lender of your credit score is the best.
4. Type of credit portfolio.
The fourth factor is taken into account the type of credit mix you have. For example, you have only a high-risk types of credit guarantees, or if you like a mortgage secured loan of some reliable? Who owns the consumer loan portfolio, higher FICO score is one. This fourth factor is only 10% of the total"FICO score.
5. A number of new applications for credit.
FICO score in the final factor is the amount you fill out the application. If you have recently taken a lot of credit applications, then this score, because it means a state of alert "is the wrong thing is full of hurt lending." This part of the score value of 10%.
The lender will usually look at themselves in employment, income, residence and marital status in the current length,However, these do not affect your FICO score. If you want to in the future, you need to pay attention to your FICO score. If your FICO score is low, may lead to higher interest rates to purchase additional mortgage insurance, if a house, and in some cases, loans refused.
If you have completed such a major mortgage loan scheme, it may be wise to obtain a copy of your credit report six months ago, plan to apply. TheGive you time to come to your history, to ensure that there is no difference. If you find an error, please contact the credit reporting agencies in writing. You will have 30 days to investigate and correct whether it meets your needs, you can find. You can also request the revised credit report, they are legally obliged to you, if passed to the lack of precision to find and fix.
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