Annual Credit Report

Find Information on How to Get Your Free Annual Credit Report and Credit Score.

Free Fico Credit Score

The Importance of the FICO Score

Your FICO credit score is your ticket to getting the best financial deals in the country. You cannot expect to get through your life without having to face up to the realities of maintaining a FICO credit score.

What is a FICO score and why is it so important? For those in the credit industry, knowing what a FICO score is can help a lot in maintaining a healthy lending business. That is because the FICO score is being used in order to assess a person's credit worthiness. Lending money to people is always a risky endeavor. Lenders always have the fear of never ever getting back the money that they have loaned. And because it is a business, lending institutions can only make a profit if borrowers actually make the payments on the money that they loaned. For them, it is very important to know about an individual's borrowing as well as debt payment behavior before they can ever decide on handing out the money in the form of a loan or other types of credit.

Creditworthiness of an individual is something that lending institutions really want to know before they ever want to decide of loaning any amount of money. And the best way to do that is by knowing the FICO score and what it represents in terms of an individual's credit behavior and pattern. And just what is a FICO score? It is simply a way of being able to measure an individual's creditworthiness without requiring the lending institutions access to an individual's income history or employment status and, in a way, being able to maintain a person's privacy in some way.

What is a FICO score and how did it come to be? It was originally developed by the Fair Isaac Company in order to help the credit industry assess individuals applying for credit. The FICO score is calculated taking into consideration certain factors that determine one's credit behavior. Such factors included in calculating for the FICO score include one's credit history, current credit owed, the length of the credit history, recent loans applied for as well as the various types of credit each individual has obtained. The FICO score is now widely used by major credit reporting agencies in providing lending institutions with a credit report on individuals applying for a loan, getting a mortgage or trying to get approved for a credit card. Credit card providers and banks also use the FICO score in order to determine credit limits and the setting of interest rates.

Before an individual's FICO score can be calculated, he or she must at least have one credit account open and active for a minimum of six months. This is the bare minimum of information that is needed for calculating an individual's FICO score, although it would still be a long way from being considered credit worthy. Most lenders prefer to see an individual having minimum of three or four credit accounts that have been maintained for at least 12 months. This is what banks look for in providing large lines of credit and mortgages to its clients.

What is a FICO score in terms of your credit worthiness? A FICO score is rated at scale from 300 to 850. The accepted median for the FICO score is around 720. FICO scores that are 725 and above are considered good scores while those found below 600 are considered bad. Making sure that one keeps his or her FICO score high would ensure that lenders would approve of credit or loans being applied for.

Article Tags: Fico Score, Lending Institutions

Source: Free Articles from ArticlesFactory.com

Next page: Free Credit Score Gov


Bookmark/Share This Page:

ADD TO DEL.ICIO.US ADD TO DIGG ADD TO FURL ADD TO NEWSVINE ADD TO NETSCAPE ADD TO REDDIT ADD TO STUMBLEUPON ADD TO TECHNORATI FAVORITES ADD TO SQUIDOO ADD TO WINDOWS LIVE ADD TO YAHOO MYWEB ADD TO ASK ADD TO GOOGLE ADD TO MAGNOLIA ADD TO NING ADD TO RAWSUGAR ADD TO SPURL ADD TO TAGTOOGA

  Bookmark and Share

Recommended Products

Get The Debt Help You Need

First Choice Capital Resources - offers a fast, secure, and private way to borrow the Cash you need! Borrow Cash now and have ample time to pay it back.

Get up to $5,000 to use in any manner you like
60 second Cash approval
Great repayment terms
Bankruptcy and poor credit OK
Fast, secure and confidential

Getting the cash and credit you need has never been easier. Fill out one simple online profile and we will match you with multiple lenders. No lines, no hassles and no paperwork! Click here to Sign Up Now.

Credit ENHANCEMENT

Receive Full-Service Credit Enhancement

Start getting your credit back to where it should be by monitoring and managing negative items that may be unjustly counting against you on your credit report. We recommend a company called Riverwalk Credit Solutions to help you correct inaccurate credit items and get your score as high as possible.

Get immediate access to your credit profile, quickly analyze your credit items, and instantly begin disputing the errors and inaccurate items on your credit report.

  • A full-service credit enhancement program for a low, affordable price.
  • Fully compliant with all Federal regulations, including the FCRA and CROA.
  • Improve the accuracy of your credit reports at all 3 major Credit Bureaus.
  • It's easy - we're here to help you every step of the way.
  • Begin your Credit Enhancement now. It takes just minutes to get started.

Click here to fill out the form on the next page and a credit specialist will contact you to discuss your