What is the Fico and whether it will hurt me?

I first heard the term FICO, and I do not know what it means. Simply put, this is your credit score. California company called Fair Isaac Corporation first developed FICO. FICO score placed in your account and your credit history to hold the type of value. In the FICO score range of 300-850 majority in the United States more than 600 FICO score.

There are several factors, your"FICO credit score. First of all, your payment history is a class of pertussis, 35 percent - of any other factors, the best. If you pay bills on time, you have been so great, but if you pay the bill late in the on a consistent basis, you are so bad. If you are seeking debt collection company, which is even worse is that if you declare bankruptcy, this is the worst rating.

Your FICO score in the second factor is how much money in the endThe amount you owe and credit is now available. They will be together all the outstanding solutions, such as car loans, mortgages, loans, is also a school loan, then compare that number to your annual salary. Then, they will increase the credit amount and you compare your current use. People, all with (for example, the use of credit cards, if your credit cards are most vividly) than those who do not rate too. TheseWorth factor 30%.

The third factor is how long is your credit history. The longer you have your credit, the higher your FICO score will be. In addition, if you have a long-term loans and the parties have, you will score better in this respect means. This third factor will be counted as 15% to your bottom line.

The fourth factor is taken into account the type of credit mix you have. For example, you onlyUnsecured loans (high risk), or you have some, such as mortgages and car loans secured loan of solid? Human and higher FICO credit score a good combination. This fourth factor is one that only 10%.

Factor in the evaluation of a new loan or credit application you have already filled up. When you have a lot to fill the recent, will hurt your score, because it gives alert "something may be wrong loan." This partScore is worth 10%.

The lender will look for a rule on employment, income, residence and marital status in the current length, but your FICO score will not be affected by these factors. After a bad FICO score to frighten anyone who should be right to borrow money for future plans. If you have a FICO score lower, this could mean higher interest rates, extra mortgage insurance to purchase a house, or in some cases, loans refused.

This is aGood or bad idea, there is a copy of your credit report before the loan application to obtain a large 6-12 months, you can view your history in order to ensure that there is no difference. If you can not find an error, please contact the credit reporting agencies in writing that they have 30 days to learn, and correctly, and if they find the truth demands. You should also look for a credit review of the report, asking them to legally obliged to you, if passed to the lack of precision to find and fix.