What is FICO score?

A FICO score is one of the most prevalent credit scoring models that lenders use to determine a customer's credit risk (ability and likelihood to repay debt). The FICO score is calculated in a mathematical equation based solely on information in your credit file maintained by the credit reporting agencies. This mathematical formula was devised by Fair, Isaac and company 0 hence the name FICO. While a credit report is your detailed financial history, the FICO score, like a snapshot, represents your credit worthiness as a number at any given time.

FICO score range from 300 to 850: a higher score indicates a lower credit risk. Although knowing your actual score can help you make realistic financial decisions, it is more important to understand the key factors affecting your score. The FICO score evaluates five main categories of information:

  1. - Your Payment history:
    Includes detailed payment information in regards to the number and severity of late or missed payments. This is the category given the most weight in determining your score.
  2. - Amount Owed:
    Examine your total debt and distribution of the amount owed over your accounts.
  3. - Length of credit history: Reports how long you have had your accounts and when you last used them.
  4. - New Credit: Report on the number of recently opened accounts and the frequency of credit inquiries.
  5. - Type of credit use: Takes a look at what kind of credit accounts and how many of each type you have.

Since your credit score is a crucial factor in determining the amount, rate and terms you qualify for, it?s advised that you check your credit report periodically for accuracy.

You can order a credit report or find out more about credit cores by contacting any of the three main credit-reporting agencies.

  • Equifax: 1-800-525-6285, www.equifax.com
  • Experian: 1-888-397-3742, www.experian.com
  • TransUnion: 1-800-680-7289 www.transunion.com

Ordering your credit report directly from these agencies does not affect your credit score!

It is not unusual to have mistakes in your credit report and FICO Score (duplicate names, wrong social security, misspellings, etc). Contact your credit burro to fix your credit report.

If you cannot resolve your credit problems, please contact us via email (refinance@0feemortgages.com) or via phone (888-360-3337), we will help you solve your credit problems.