What Is A FICO Credit Score – All 3 credit scores are important and come with your free report. The FICO, which stands for the Fair Isaac Credit Scoring model, has a scale that can vary depending on what your free report says about you. The agency is the standard measure of consumer risk in the United States and is often used by banks and insurance companies to make important decisions.
The agency was founded in 1956 and is recognized by most of the world’s top financial institutions since they rely on the system for control risk.
There are three main reporting agencies that report and how you pay your bills on time. The majority of banks use the middle rating when lending for a mortgage and in rare cases, some use the lowest one qualify you for a loan. This number is different from each reporting agency.
A good FICO rating is a number above 720, which is what most banks like to see. That’s when most lenders will offer favorable interest rates on mortgages and loans. A score below that, but higher than 640, is considered “fair.”
A person with no credit will have a low FICO in comparison to someone who is established. Each of your three reports must contain one account, which has been open for at least six months. When you make a loan payment, the finance company or bank reports it and your credit is adjusted as such, depending if you were late or on time.
To see what your FICO range is, you can get all 3 reports by visiting each bureau directly: Experian, TransUnion, and Equifax.