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Understanding Your FICO Score
Buyers who are looking for credit may discover early-on that their credit score plays a vital part in what kind of credit they are allowed, and in formative the interest rate that a lender provides.

What is a credit score?
A lender used to see credit score of the applicant in order to estimate the risk factor. Experience has shown them that borrowers with higher credit scores are less likely to non-payment of a loan.

How are credit scores calculated?
Credit scores are produced by plugging the data from your credit report into software that examines it and cranks out a number. The three major credit reporting agencies don’t essentially use the same scoring software, so don’t be surprised if you find that the credit scores they establish for you are different.

Why are credit scores sometimes called FICO scores?
The software used to calculate a excellent number of credit scores were build up by Fair Isaac Corporation - FICO.

Which parts of a credit history are most important?
The chart on the page reveals a collapse of the estimated value that each feature of your credit report adds to a credit score calculation.

Use these percentages as a guide
35% - your past payment record
30% - amounts you owe
15% - length of your credit history
10% - kinds of credit used
10% - new credit

Sample Credit Score Tiers
• 720 - 850 Excellent
• 700 - 719 Good
• 675 - 699 Above Average
• 620 - 674 Average
• 560 - 619 Below Average
• 500 - 559 Poor