Understanding fico scores

MyDocuments Understanding Your Credit Score and Report If you've ever obtained a mortgage or car loan, it's likely your credit history and personal credit score have been checked in order for you to receive that loan. Understanding your credit score and taking steps to improve it can help you maintain a healthy financial outlook. The importance of credit In the simplest terms, credit is money you borrow and promise to pay back, typically with interest. Types of credit include revolving credit, such as credit cards; automobile and personal loans; and home purchase, refinance and equity loans.

Understanding fico scores

Scores are based on a snapshot of your credit file at a particular consumer reporting agency at a particular point in time, and help lenders evaluate your credit risk. This data is grouped into five categories as outlined below.

The information in your credit files is supplied by lenders, collection agencies and court records. Not all lenders report to all three major CRAs. What are Key Score Factors? Knowing these score factors can help you better understand your financial health over time. There are many different credit scores available to consumers and lenders.

When reviewing a score, take note of the score date, consumer reporting agency credit file source, score type, and range for that particular score. There are many reasons why a score may change. Review your key score factors, which explain what factors from your credit report most affected a score.

How do I check my credit report?

Understanding fico scores

You may get a free copy of your credit report annually. To request a copy of your credit report, please visit: Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history, or credit rating.

Serving Members Since The Fair Credit Reporting Act (FCRA) also gives you the right to get your credit score from the national credit reporting companies. They are allowed to charge a reasonable fee for the score.

When you buy your score, you often get information on how you can improve it.

Understanding fico scores

Understanding Your Credit Score. Your credit report is an important aspect of your life.

The Three Major Credit Agencies

In addition to affecting you financially, your credit report can impact your education, career, and the interest rates lenders offer you when making major purchase decisions such as buying a home or a car. FICO develops FICO ® Scores based solely on information in consumer credit files maintained at the CRAs.

Understanding your FICO ® Scores can help you better understand your credit risk and allow you to more responsibly understand your financial health.

A good FICO ® Score . A credit score is a three-digit number that tells a lender how likely you are to repay a debt (or how likely you are to default). In other words, your score determines your creditworthiness.

A low credit score means you are a high-risk borrower that’s had some challenges with debt in the past. Industry-specific FICO scores — like the auto score — start with a base FICO score. Think of a base FICO score as a universal score of sorts, one that assigns you .

The FICO credit score range is to in most cases. Many versions of the FICO score exist, though, and some use different ranges. For example, some of the FICO scores used by the auto and credit card industries are between and

Understanding Credit Score Algorithms | Amplify Credit Union