Your FICO score is taken from years of your credit history using the Fair Isaac and Company model. You will have a score with each of three major credit reporting agencies using slightly different models to calculate your score. Experian uses FICO, Equifax’s uses BEACON and TransUnion uses EMPIRICA. Scores in the 650 range are common but range between 300 and 850.
A consultation with a good lender about methods to improve and maintain your credit scores can help you get on track and keep you there. These scores show the type of loan and interest rate you may qualify for when applying for your mortgage.
Factors for reviewing your FICO score include:
- Types of Credit – A healthy mix of credit cards and loans is good.
- Payment History -Have you kept all payments on time and current?
- Credit to Debt Ratio – This is the ratio of what you owe compared to how much credit is available to you.
- Credit Inquiries – how often has your credit history been accessed by someone other than you?
You can find out more about FICO scores at www.myFICO.com, Fair Isaac’s informational site and once per year, for free, you can review all three of your credit reports at www.annualcreditreport.com. And, for a small payment, you can get your FICO score from each bureau on their websites: www.equifax.com, www.experian.com and www.transunion.com.