Your FICO and Credit Score Explained

There are several different types of creditthere's nothing going on that you don't know
scores available. The three major credit bureaus inabout. Some credit card companies have your
the U.S. use scores that are produced by FairFICO score on their website. If you pay your bill
Isaac and Company, hence FICO. The three creditonline, you can check on your score while you are
reporting agencies that provide these scores tothere. That way you can keep a close eye on
lenders are: Experian, TransUnion, and Equifax.your score. Your credit score will vary some
Your FICO score can range from 300 to 850.month to month but, not much. It shouldn't vary
Lenders use these scores, along with othermore than 5 or 6 points. If moves more than
factors, to determine your credit worthiness. Thethat find out why.
higher the score the better chance you have ofYou are entitled to a free copy of your credit
getting a loan. A higher score will also get you areport once a year. You can also get a free
better interest rate.report if:
There are several factors that will affect your1. You have been denied credit because of
FICO score. Some are:information on your report. (You have to request
1. Length of credit historya copy within 60 days.)
2. Outstanding debt2. You believe your report has errors stemming
3. Payment Historyfrom fraud.
4. The amount of credit used verses credit3. You receive public assistance.
available4. You are unemployed and looking for work.
5. Frequency of derogatory informationIf you don't qualify for a free report, you can get
6. Severity of derogatory informationone from any of the credit bureaus for a small
7. Number of inquiresfee. Contact information for the three reporting
8. Number of delinquenciesagencies is:
FICO scores are updated once a month, generallyEquifax
around the 21st through the 29th.P.O. Box 740241
They are calculated on the previous month'sAtlanta, GA 30374
activity. They can vary from agency to agency,Phone # 800.684.1111
depending on what that agency has on their file.TransUnion
Not all creditors report to all agencies. SomeP.O. Box 1000
creditors don't report to any of them.Chester, PA 19022
Your FICO score will change as your credit historyPhone # 800.888.4213
changes. If your lender uses one agency to checkExperian
your credit when you apply for a loan, thenP.O. Box 2104
checks it with another later, that will make yourAllen, TX 75013
score change. But, only within that lendingPhone # 888.397.3742
institution.When contacting the credit bureau, you will need
Each creditor decides what range to use into provide them with the following information.
considering who will be a good risk. They use your* Your full name. (including generations if any)
FICO score along with some or all of the above* Your spouse's name (if applicable)
factors to determine your credit score to see:* Your current address
* If you are a good credit risk* Your addresses for the last 5 years.
* How much and what type of interest you will* Your birth date.
pay* Your social security number.
Check on your credit score often to make sure* Your phone number.