Fico Score
What Is My FICO Score?
What in the world is a FICO score? The FICO scale is a universal scale that creditors use to determine their risk when considering your loan application. Many factors go into your score, such as current credit balances, past credit history, amount of outstanding debts and also positive factors such as balances paid on time and in full, etc. The FICO scale ranges from 300 to 850, with 850 being high and 300 being low.
The use of the FICO scale has done wonders in the credit and loan community. Because of FICO scores, people acquire loans faster. Thanks to a the use of FICO scores the mortgage application process that used to span over a period of weeks now takes merely a couple of hours! This scoring process also allows retail stores, Internet sites, and other lenders to make lightning fast credit decisions.
But that’s not all! With the introduction of FICO scores, credit decisions are now much more reasonable! As a result of using credit scoring, lenders can focus on only the facts related to credit risk rather than personal feelings. Demographic information such as your gender, race, religion, marital status and nationality are not considered in your FICO score.
FICO scoring also allows credit mistakes to count for less! Over time, past credit mishaps begin to fade and eventually become replaced by recent good credit payments. You will no longer have to fear getting turned down solely because of past problems in your credit history.
In the long run, your FICO score can give you the extra help to getting the loan or mortgage that you seek. The use of credit scores gives lenders the confidence to offer loans to more people; this is because they have better knowledge of the risk they are taking on. The FICO scale offers mutual benefits; it allows you the borrower and the lender to achieve more from your credit process.