What is your FICO score, which is how it affects your ability to borrow money?

We all know that we learn from these major credit bureaus and your credit history, in particular, is an important factor is the need to put together, your FICO score. So what is your FICO score, and how it affects your debt management decisions?

FICO is a company by the Fair Isaac, the company created a credit scoring system is a number, usually 350-850, the bank set up by the acronymCredit companies to develop proprietary algorithms, with the current 350 and 850 of the worst achievements are the best.

Although the algorithm is one of the close of business held in secret, in fact has been for decades, many people from the most important factor in a lot of words. For example, any late payment will lower your score, we give you, and other late payment and subsequent payments, the more reduction in the number of points.Total debt is another factor you each month. Another less important factor is your credit and credit made on your account number card number.

Any basis for the edge of about 620 points, and has less than 580 poor value. A value of 720 or more are considered very good, very good. A score, from 620 down to 720, is a gray area of thingsOne of your FICO score more than other factors more important is that you play in the credit decision.

Mortgage companies, banks, credit card companies and other lenders will provide your FICO as an extremely important factor in determining credit ratings to see if there is. The lender will also consider your guests, set the interest rate for you free of charge. All the other things that the more points lowerThe interest rate charged is to provide to you.

In many cases, of course, does not mean that any other and the current interest rate, the current demand for loans, the whole economy and a number of other factors on whether the loan and the lender what the rate will be a powerful influence.

Another very important factor, today is the widespread use of computers and the financial industry has changed dramatically in the past 20 years, while consumersFast and easy access to services and products through the Internet.

Although all of these on your FICO score change remains the most important tools and lenders, if not determine the final decision, of course, affect the "first knife" If there were a stack of loan applications, loan the face of the approval or denial.

Fortunately, the decline in the economy, there are options, even if your FICO score is low, you can stillThere are several options. The first thing you should do is bring the sports program, increase your credit score.

When you are the gradual elimination of reimbursement or negotiating with your lender's credit will gradually increase your overdue debt. And do not forget that this is late 30 and 60-day-old and owes a factor in the future with your credit score.

When you are improving, your guestsIn addition, other lenders may appear to be ready to have a higher risk and borrow money. The difficulty is, of course, such loans almost always carry a higher interest rates. If you are your best way to see if you can provide loans at the same time, and your FICO score increase in work effort.