a FICO® score? Your FICO® score is the numeric representation
of your financial responsibility, based on your credit history.
Based on a scale of 300 -850, there are three FICO® scores
- one from each national credit bureau. These three FICO®
scores are the measure that most lenders will look at when evaluating
your credit or loan applications.
with the credit report, lenders can also buy a credit score
based on the information in the report. That score is calculated
by a mathematical equation that evaluates many types of information
that are on your credit report at that agency. By comparing
this information to the patterns in hundreds of thousands of
past credit reports, the score identifies your level of future
order for a FICO® score to be calculated on your credit
report, the report must contain at least one account which has
been open for six months or greater. In addition, the report
must contain at least one account that has been updated in the
past six months. This ensures that there is enough information
- and enough recent information - in your report on which to
base a score.
Credit bureau scores are often called "FICO scores"
because most credit bureau scores used in the US are produced
from software developed by Fair Isaac and Company. FICO scores
are provided to lenders by the three major credit reporting
agencies: Equifax, Experian and TransUnion.
scores provide the best guide to future risk based solely on
credit report data. The higher the score, the lower the risk.
But no score says whether a specific individual will be a "good"
or "bad" customer. And while many lenders use FICO
scores to help them make lending decisions, each lender has
its own strategy, including the level of risk it finds acceptable
for a given credit product. There is no single "cutoff
score" used by all lenders and there are many additional
factors that lenders use to determine your actual interest rates.
However you can now see what interest rates lenders typically
offer consumers based on FICO score ranges.