A Review of FICO Credit Score

What is a FICO score? You may have heard the term, but do you really know what it is?A FICO score is commonly used throughout the lending industry to quickly identify whether a potential applicant is creditworthy. So when you apply for a credit card, mortgage, or a bank loan, the creditor will check both your credit report and your FICO score. The initials are derived from the scoring system developed by Fair Isaac and Co. Your FICO score is calculated using several different variables that can be grouped into five categories. Each category makes up a percentage of your score. Below are the FICO score categories: Payment History: 35% of your score. Lenders want to know your past track record with other loans and credit.Amounts Owed: 30% of your score. Depending on the amounts owed, it can mean the consumer is overextended. This factor determines if you can currently manage more credit responsibly.Length of Credit History: 15% of your score. A longer, positive, credit history will increase your score. New Credit: 10% of your score. Opening several new accounts, or having many inquiries into your credit history in a short period of time, will affect your chances of qualifying for credit.What Types of Credit You Use: 10% of your score. This factor takes into consideration the mix of credit cards, loans, finance accounts and mortgages you have.So, where can you order your credit report along with all 3 credit scores? You may do so by clicking on the banner below!