What is a FICO Score? Very simply put, a FICO score is a credit score that lenders use to determine whether or not you will pay your debts. The FICO score method was developed during the late 1950s by Fair Isaac Corporation, and it attempts to condense your credit history into a single number. Each of the three major credit bureaus will assign you a FICO score number based on your credit history, such as:
~Late payments
~The amount of time credit has been established
~The amount of credit used versus the amount of credit available
~The length of time at your present residence
~Employment history
~Negative credit information such as bankruptcies, charge-offs, collections, etc.
Your lender will use your FICO score to determine how much money you can borrow and what interest rate you will pay.
Although it is difficult to increase your credit score in the short run, over a period of time you can get a higher FICO score if you:
~Pay your bills on time. Late payments and collections have a big impact on your score.
~Do not apply for credit frequently. Having a large number of inquiries on your credit report can worsen your score.
~Reduce your credit card balances.
Many lenders will review your credit history with you and assist you in correcting errors and planning "repairs." To view your information, contact the three major credit bureaus directly at:
Equifax www.econsumer.equifax.com 1-800-685-1111
TransUnion www.transunion.com 1-800-916-8800
Experian www.experian.com 1-888-397-3742
~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com
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