Find the best credit card offers online.What is a FICO score?
A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its pioneering work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrowers credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable.
Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance. Developing these models involves studying how thousands, even millions, of people have used credit. Score-model developers find predictive factors in the data that have proven to indicate future credit performance. Models can be developed from different sources of data. Credit-bureau models are developed from information in consumer credit-bureau reports.
Credit scores analyze a borrower's credit history considering numerous factors such as:
- Late payments
- The amount of time credit has been established
- The amount of credit used versus the amount of credit available
- Length of time at present residence
- Negative credit information such as bankruptcies, charge-offs, collections, etc.
There are really three FICO scores computed by data provided by each of the three bureaus––Experian, Trans Union and Equifax. Some lenders use one of these three scores, while other lenders may use the middle score.
Frequently Asked Questions (FAQs)
How to know my credit score? Where to get it? The three major bureaus in the U.S., Equifax (1-800-685-1111), Trans Union (1-800-916-8800)and Experian (1-888-397-3742) .
You can also Click Here to Get All 3 FICO Scores and Credit Reports!
How can I increase my score? While it is difficult to increase your score over the short run, here are some tips to increase your score over a period of time.
- Pay your bills on time. Late payments and collections can have a serious 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. If you are "maxed" out on your credit cards, this will affect your credit score negatively.
- If you have limited credit, obtain additional credit. Not having sufficient credit can negatively impact your score.
What if there is an error on my credit report? If you see an error on your report, report it to the credit bureau. The three major bureaus in the U.S., Equifax (1-800-685-1111), Trans Union (1-800-916-8800)and Experian (1-888-397-3742)all have procedures for correcting information promptly. Alternatively, your mortgage company may help you correct this problem as well.
Most Recent Credit Card Articles:
2010-06-09 Techniques on Lowering Credit Card Interest
Credit card companies have long been making all sorts of changes when it comes to their terms and conditions. The sad fact about this is that not too many clients are actually aware that these changes are taking place. This then should serve as motivation to be aware of the existing changes and then... (more)
2010-06-07 Strategies to Reducing Interest Rates
Credit card companies have come up with rules and disclaimers saying that they hold the right to change some of their agreement terms as they see fit at any given time. These are strategically included in the fine print of your usual 32-page booklet. Yet, most people do not really pay attention to t... (more)
2009-07-26 Secrets To Get Low Interest Rate Credit Card From Current Provider
You probably have heard many times that to get the best credit card, you need to do intensive research. It could be done online or offline. However, the thing is that you should not settle for one prospect provider or accept what seems to be an attractive offer. By taking time to do research, you wi... (more)
2009-07-24 Ways To Save Time In Search For Low Rate Credit Cards
People who own a credit card can either enjoy its benefit or be threatened by its possible problem. The former happens if you know how to manage your debts. The latter will happen if the card will be abused and balances bloat. To maximize the use of the card, cardholders are looking for low rate cre... (more)
2009-05-23 The Two Faces of the Zero Percent Interest Credit Cards
No matter how hard you would want to avoid incurring uncalled for credit card debt, this seems to be almost impossible with the skyrocketing credit card interests that come with each purchase you make using your plastic. Applying for a credit card with a zero interest rate may appear very appealing ... (more)
