Credit Scores: The 411
Everyone knows the significance of the three-digits “411”. But what about these numbers: 510, 660, and 750? These numbers might not have much relevance to you, but if you’re like the rest of Americans applying for a home loan, insurance, or even a credit card, you can be damn sure those numbers hold some real importance.
The Fair Isaac Corporation (FICO) compiles a summary of all your credit accounts and payment history and scores it as a three-digit number ranging from 300 to 850. Lenders and insurance use the score to determine how much money you can borrow and at what interest.
Obviously, the higher your score the better and many firms say that you need at least a 700 to get a good rate. So how, you may ask, is this three-digit determiner of your life established? Well, today is your lucky day! Here is a simple chart split up into each of the factors that go into your credit score:
For a free copy of your credit report, check out http://annualcreditreport.com/, the only federally authorized website.
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Tags: Add new tag, Credit, credit score, Fair Isaac Corporation, FICO, payment history