What exactly is FICO Score?

FICO score is just another way of saying your credit rating. We hear terms like “credit rating” and “credit score” and for many, those terms are subjective. FICO score is a rating/scoring system that actually quantifies your credit score and turns it into a number. FICO is short form for this numeric rating system developed by the Fair Isaac Company back in the early 1980′s. This numeric score has become the standardized was the 3 main credit agencies calculate your credit worthiness. Equifax, TransUnion and Experian all have separate files on you, and collect information on your credit history. And all three give you a FICO score.

What Is The FICO Score Range?

Based on your credit details and history you FICO score will range between 300 and 850.

At 300 you’ll have a very hard time getting any creditor to grant your credit. And at 850 you’ll be swarmed with offers from every lender and credit card company.

Your FICO score is not a credit report. A credit report is a detailed list of all your financial transactions. This information, along with a few other things is used to calculate your FICO score.

Your credit report will contain the following

- any credit account you currently have open
- a report of your monthly payments
- how many times you’ve applied for credit, and from who
- what you’ve applied for credit for
- if you’ve declared bankruptcy

Your credit report is just a detailed, ever updating list. You won’t see your FICO score when you look at your credit report.

The credit bureaus use more than just your credit report to calculate your FICO score. Of course, how you pay your bills is important. But they also look at how much credit you’re using, the percentage of credit granted to credit used, total debt load as a percentage, how long you’ve had a credit file, etc.,

The majority of your FICO score is calculated by your payment history and the total debt you currently have. If you want to improve your credit score these are two things you can easily work on.

Pay down your debt, and make sure you make your payments on time. The best thing about hitting a bump in the road is that your score is a dynamic number. It changes constantly, and you can start to improve your FICO score quite easily. Especially now that you know what it is, and how it’s calculated. You’ll end up saving money if you keep an eye on your FICO score!

Also known as the Fair Isaac Corporation Score, FICO is a financial history with a rating between 300 and 850. In calculating the credit score, a number of factors are put into consideration and they include the length of the credit history, late payments of bill, amount of debt and the current credit limits. The main reason for frequently checking our credit report is to check out for errors since any form of outdated, fraudulent, duplicate or wrong entries can negatively affect the FICO score rating.

Both The Fair Credit Reporting Act and the Accurate Credit Transactions Act statethat it is the right of the consumer to request a copy of their FICO credit report once a year. It is therefore important that you request your FICO credit report in order to discover the various things you can do to  improve the score by reading all the details. Fortunately, you can easily and quickly achieve this by use of the various free credit report websites. These websites offer other serives such as credit monitoring, identity theft protection but you need not require them to get your FICO credit score.

(PRWEB) July 20, 2004

We at http://www.goldmedalmortgage.com have programs specifically for California residents who have a high FICO score and qualify for a low home mortgage loan rate that could potentially save you hundreds of dollars a month.

As an example on a $ 150,000 30-year, fixed-rate mortgage a borrower with a high FICO could pay as low as $ 895 a month, where somebody with a lower score could pay $ 1238 on the same loan.

A FICO credit score can range from 300 to 800. Remember, the higher the FICO credit score the better the home mortgage loan rate! Most borrowers fall into the 600-800 credit score range.

A high FICO score is your reward for paying bills on time. This is one of the most important factors that determine your home mortgage loan rate. A borrower’s high FICO score is the best signal to the lender of how well you’ll make your mortgage payments.    

The three major credit reporting agencies (Equifax, Experian and Trans Union) use a slightly different system to arrive at a credit score. The best known is called the FICO score, developed by Fair Isaac and Company (FICO).

FICO is used by Experian. Equifax’s credit score is called BEACON, while Trans Union uses EMPIRICA.

The most important information that the credit agencies use to determine your credit score are:

Credit History – How long have you had credit? The longer you’ve had good credit the higher the FICO credit score.

Payment History – Do you pay your bills on time? One 30 or 60 day late payment can damage your good FICO credit score.

Credit Card Balances – How much do you owe and how many accounts do you have? A person who has many credit cards even if there are small or no balances on the accounts has a greater potential to incur debt. Close out the credit cards that you don’t use!

Credit Inquiries – How many times have you had your credit checked? The fewer inquiries on your credit report the better the FICO credit score. So when you sign up for a free gift at the mall and your credit gets checked you might have lowered your FICO score even if you have no intention of using the new card!

It is very important to know your FICO score even if you are not in the market for a home mortgage loan rate. You could have errors on your credit report which are lowering your FICO score.

The 3 credit agencies have valuable information on your credit scores. http://www.equifax.com, http://www.experian.com and http://www.transunion.com.

We at http://www.goldmedalmortgage.com have programs specifically for California and Nevada residents who have a high FICO score and qualify for a low home mortgage loan rate. We also have programs for people who have FICO scores which are lower. We make many loans that banks can not. As we like to say, “We make loans that banks do not”!

For more information call 866 398 4664 or please go to:

http://www.goldmedalmortgage.com

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, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

located within the United States and its territories.

Why am I getting this instead?

Best answer:

Answer by jpocia03
I would look at annualcreditreport.com. From there you will have access from Experian, Transunion and Equifax. These credit bureaus are FICO based.

You should have access to that via internet from the Phillipines.

Let me know if you have any other questions.

What do you think? Answer below!

Fico scores affect whether you can get credit and what interst rate you pay for credit cards, auto loans, mortgages and other kinds of credit. When testing to see what type of loans you are eligible for, most companies will base your approval off of your credit score. This means that having a high FICO score will always be a benefit towards those in a lending situation.

Planning on taking out a loan for a car or obtaining financing for a mortgage? For most kinds of credit applications, higher scores mean you are more likely to be approved and pay a lower interest rate on new credit cards or loans.

When looking for loans and credit cards, having a high FICO score will determine what your interest rates are through the company that you are obtaining a card or loan from. Did you know shaving just 2 or even 3 percent off of a 0,000 mortgage will save you more than ,000 in the long run. That is ,000 that one could put towards a new car or modifying their home or really whatever they wanted.

When trying to rent an apartment or obtaining loans for houses, good FICO scores come into play. Without good fico scores, your apartment application may be rejected. Having a high FICO scores can reduce how much you will have to pay on a deposit for your apartment. It will also lower security deposits for utilities inlcuding phones, electricity, cable TV and even natural gas.

Banks and businesses that use your FICO score will look at your scores constantly for fluctuation. Creditors and banks look at your scores when deciding whether to change your interest rate or adjust the limit on a credit card. Having good credit scores will help you obtain low APRs on mortgages, as well as loans, and will work towards benefitting your finances in the long run.

To improve one’s FICO score, you need to do small things over time that will positively affect your score. Changing a FICO score does not happen instantly, so do not be lured into promises by loan companies that claim immediate alterations to your credit score are possible. In order to positively alter your FICO score, you need to pay your bills on time, always repay more than the minimum on loans and credit cards, and make sure you do not miss any payments on what loans you currently have out.

There are now low cost services available where you can monitor your FICO score. Monitoring your credit through the major three credit agencies will alert you to fraudulent actions on your account and allow you to fix any attempted identity theft.

What can also occur when trying to improve your FICO score are little nuances that show that you have a good score. Many credit card companies that monitor Fico scores will start sending you credit cards through the mail along with directions on how to activate them. Such small actions actually show that card companies trust your current score and want you to be a customer with them.

A site to test your score at is myFico.com. This site gives you an estimate of your FICO score by asking simple questions. It takes less than five minutes to do and just involves a basic relay of information from one’s loan and credit card history. The estimate given at the end can tell you where your score should be, and help you setup an accurate estimate with what your FICO score is.

Credit monitoring services now examine your credit reports through TransUnion, Experian, and Equifax for accurate and up to date FICO scores. These company’s sites allow the user to check their score annually, so space out your checking with the three major companies over the course of a year to monitor your credit score.

With the high amount of identity theft monitoring your Fico score is no longer a luxury, it’s an safeguard for your financial well being.

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The higher your score in your credit report, you can buy the confidence of the financial institutions. You will be able to take your pick from a variety of financial institutions while applying for a loan. Your credit reports and your FICO score are the best tools available in the hands of the financial institutions to judge your reliability.

Calculating Your FICO Score

Calculating your FICO Score by means of a complicated mathematical formula is done taking into account your present and past financial dealings. There are a number of things that are taken into account; mainly your financial records are probed deeply. You income is assessed in terms of your expenditure, the debts that you have incurred are also considered. Whether you are involved in some sort of a loan with other financial institutions or have dues in car payments or have a host of credit cards that you used previously.

Your accountability factor in terms of repaying your loan is judged. If you are punctual and have maintained a desired level of consistency in paying back your loans, then you are likely to have a higher FICO score, otherwise not.  Calculation of your percentage score is done on the basis of the financial activities that you have been involved in, both in the past and the present.

However, it is imperative that you go through a copy of your credit report online frequently, so that you can check for any sort of frauds, errors or wrong information. You need to keep a tab on the credit report as any wrong information or errors will invariably harm your reputation and affect your credit score. With time, the whole system is becoming advanced and more transparent and you can readily get the required information, free copy of your FICO score via the internet.

The Average FICO Score in the USA

The average FICO Score varies but the range is 300 to 850. Now Americans who boast of good credit score have 850 in their kitty, having the highest score. For that matter a credit score above 700 is considered good enough for the moneylenders to trust you. Your credit history should be good enough if you want money or big loans from the money lenders. The unfortunate ones who get the tag of having a poor credit usually have 300 credit score.

Los Angeles, CA (Vocus) July 22, 2010

Figures recently released by Fico Inc. show nearly 43.4 million Americans have a credit score of 599 or below. This marks them as being a high risk for most lenders.

Many Americans facing a low credit score are unlikely to be able to obtain a credit card, car loan, or mortgage. Lower credit scores; resulting from heavy consumer spending and debt has been attributed to the recent slow economy.

Morgan Drexen, Inc. CEO Walter Ledda says, “Creditors were over lending money to consumers and solely basing their underwriting standards on FICO scores. They need to take responsibility for the credit crisis because they over extended credit based on the FICO scores.”

Morgan Drexen provides proprietary software and automated administrative services to attorneys across the nation. This automated software, creates efficiency so that attorneys can spend more time with their clients who are in financial difficulty and less time doing paperwork.

As consumer credit heads south, Morgan Drexen CEO Ledda adds, “ In the month of June alone the attorneys we support have engaged over one thousand new clients; in June 2009 there were a little over two thousand new clients, so numbers are down this year. These clients are consumers in severe financial difficulty. It is my hope, that consumers are now taking big steps to reduce their debt. I personally think consumers should look at their finances and try to lower their debt.

For most people a FICO score below 600 represents poor credit, but what does that really mean? Carey Howe, of Morgan Drexen says. “ Most people strive for a high FICO score, as this represents credit worthiness. Unfortunately, FICO does not consider the debt versus income ratio. It is based on five key factors. These are payment history, amounts owed, length of credit history, new credit and types of credit cards. There is no consideration for how much a person actually earns. In my opinion the FICO score often is not a true representation of credit worthiness.”

Mary Allison contacted attorneys supported by Morgan Drexen to help her with her debt. Mary’s FICO score was 802 despite the fact that she was in severe financial debt. There are many like Mary who have high FICO scores but still need help managing their rising debt.

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

By ‘sub-prime loan’ we understand a type of loan that has a higher interest rate as compared to a prime loan. This type of loan is generally approved for people with limited or poor credit history. A higher interest rate is attached to sub-prime loans for giving necessary coverage to the risks involved on the part of lenders to the ‘risky’ borrowers with bad credit records.

Because of the associated risks to provide loans to people with poor credit history, not all the lenders offer sub-prime loan programs. The mark of distinction between a prime and sub-prime lender is the higher interest rates charged by the latter. You should always opt for a prime loan instead of a sub-prime as long as your credit report permits. Avoiding sub-prime loans as far as possible is always beneficial for borrowers.

A sub-prime borrower is one who does not qualify for prime loans usually due to a low credit score. This score that we are talking about is normally referred to as the FICO Score. Lenders use this score to determine the eligibility of loans by the borrowers. A mid-range FICO score enables the borrower for applying (and being approved) for a loan with some factors taken into account. Such factors could include your concurrence to the proposed down payment amount, your outstanding debts and your ability to document the income. It is evident that many potential sub-prime borrowers may not be in a position to document their income being self-employed. In such cases, borrowers apply for what is known as ‘stated income loan’. A stated income loan is one where the borrower states or declares his income in the loan application form. Due to the inability of assessing or verifying such incomes, a further higher interest rate is charged to these stated income borrowers when sanctioning the loan.

While determining the interest rate of sub-prime loans, the same factors of prime loans are taken into considerations. If your credit score is low and you opt for a lower down payment amount, your interest rates will inevitably be higher. Also keep in mind that sub-prime lenders charge higher rates and higher associated fees due to the risks they undertake and higher costs they incur. It is also a common phenomenon that sub-prime loans end up in default more than prime loans.

Prime Borrowers Switching to Sub-prime – When and How

It is very interesting to note that many potential prime borrowers ultimately end up as a sub-prime borrower. Despite having good credit score, proper documented income and ability to comply with higher down payment amount; these people get entangled with sub-prime payments. This occurs due to those illusive TV or radio commercials which brag about attractive deals in financing or refinancing your mortgage. They offer you cash deals that are supposedly enough to clear your mortgage dues and lower monthly payments by cutting interest rates. But be advised that these so called ‘unbelievable deals’ expire early leaving you paying higher prices for your home.

If you are exploring the market for your options to finance or re-finance your home, you need to double check all the details before making a final decision for a loan. TV and radio are for your information and entertainment; hence you should be very careful with experimenting media deals that may dry-up your wallet. Always check for options with renowned lenders if they can approve a prime loan instead of sub-prime.

Do you know that a report by Wall Street Journal found that 61% of all borrowers ended up with sub-prime loans were eligible for a prime loan? This finding alone explains all about the ignorance of potential prime borrowers.

Sub-prime loans are designed to allow access to credit market by people with poor or no-credit status. You may be surprised by the endless prospects by sub-prime lenders but you should also be prepared to handle surprises of higher payments and bigger losses.

Mohammad Yousuf
http://www.articlesbase.com/loans-articles/things-that-you-need-to-know-about-prime-and-subprime-lending-717938.html

A credit score is a number that helps lenders and others predict how likely you are to make your credit payments on time. The higher your credit score, the better deal you’ll get on credit card interest. Your credit score determines how much you pay for life’s needs.

If you have previously applied for any type of loan or credit card or pay regular bills (such as a gas or electric bill), you have a credit history. A credit score is used to numerically describe your credit history. Credit scores can range from 300 (poorest) to 850 (best). A company called Fair Isaac maintains standards for calculating the FICO credit score. 

Consumer credit reporting agencies (Equifax, TransUnion and Experian) maintain a history of your repayments through the “consumer credit report”. Lenders and others can request your credit score when you apply for a loan or financial transaction, and can make a determination of your credit worthiness based on this information.

Your credit score directly or indirectly impacts almost every area of your life. Lenders use your score to determine what rate you will pay on business or personal loans and mortgages. Credit card companies can deny you credit if you have a poor score. Some insurers use your score in determining premium payments. Many landlords will check your score before approving your application for renting an apartment. Some employers can grant or deny you job opportunities based on your score. These are just a few examples of how credit ratings affect your life.

Rrohit Kumar
http://www.articlesbase.com/credit-articles/credit-scores-and-how-they-are-used-695118.html

Finding an auto loan can be tough, so there are nation’s best lenders that offer the lowest interest rates available with affordable monthly payments to match. By making auto loan lenders compete for their business, you are guaranteed the lowest market rates. And with the recession going on, you can find the best deal ever.

Some of the features of auto loan like competitive rates and flexible terms, fast easy online application, quick response, multi loan discount etc. Depending upon the different countries different conditions are applied for the auto loan, like how much minimum, maximum amount financed, for dealer purchases, vehicles can’t be more than five years old.

There are some online calculators that help you figure out if you qualify for a loan and how much your payment will be. Leasing vs. buying calculators is included. Use them to determine which route is best for you.

 There are some online specialists like Auto Loan companies, when it comes to helping you with your Bad Credit Auto Loan. They have helped thousands of people with bad credit and are here to help you. When it comes to obtaining an auto loan with bad credit you are going to find plenty of auto loan companies offering you the same services.

Many auto financing and loan companies allow you to apply online or over the phone.
One advantage provided by online lenders is the speed of application approvals. You can apply online and often receive approval in less than a day. Upon approval, lenders will often send you a check that you may use to purchase your auto.

For auto loans for any credit circumstances apply with any loan providing company who could provide bad credit auto loans in all over the country. Their qualified nationwide representatives will help you qualify for bad credit auto loans that are fitting for your requirements. No strict down payment requirements! Qualify for zero down payment bad credit auto loans we can apply for auto loan online no need to visit personally.

Always determine what you can reasonably afford for monthly payments. This should include insurance, maintenance and the actual car payment. Some vehicles that have low monthly payments may have high insurance payments due which can knock them out of your budget. Having a clear indication of what you can afford in total will allow you to effectively shop around for the best car within your budget. It is very important to ensure that you determine this amount before you ever start to shop around so you know exactly what you are able to work with.

U.S. auto sales were hobbled in the first half as gasoline prices jumped to record highs. Now, a financial crisis that pushed Lehman Brothers Holdings Inc. into bankruptcy has toughened new-vehicle loan terms and may further depress sales.  GM’s sales are down 18 percent through August.  Ford’s are down 15 percent, Chrysler’s a whopping 24 percent. Reports told today you have to have a FICO score of 720 to qualify for a car loan.

Jeff
http://www.articlesbase.com/finance-articles/how-to-qualify-for-an-auto-loan-736725.html