FICO Score

A credit score is a mathematical system to represent a consumer’s creditworthiness.  A persons credit score is based on a statistical analysis of a a person’s credit report.  This report is based on all information such as employment, credit cards, loans and basic payment history.  The information is compiled from three major American credit bureaus; Equifax, Experian and TransUnion.

Each of the three credit bureaus may report different information so it is a good idea to obtain a credit report from each credit bureau.  Lenders such as banks, loan companies and credit card companies use the information gathered by the credit bureau agencies to determine is a loan, credit card can be issued or the rate of interest and or the credit limit.

A FICO Score was developed by the Fair Isaac Corporation as a credit scoring system in 1958 for American Investments.  The FICO was the first scoring system for a bank credit care in 1970 used by American Bank and Trust.

The FICO score is based on a scale that is calculated statistically, with information from a consumer’s credit files.  The FICO score is primarily used in credit decisions made by banks and other providers of secured and unsecured credit.  Banks and other institutions use the FICO score as a factor in their lending decisions may deny credit, charge higher interest rates, demand collateral or require extensive income and asset verification if the applicant’s FICO credit score is low.

Check your FICO score often and stay current on repayments and your score will rate a high number.