FICOScores

FICO stands for Fair Isaac Corporation.  FICO score or credit score is the most important factor in obtaining a loan of any kind in America.  Your score represents an estimate of your financial credit worthiness as calculated by a statistical model.  It attempts to predict the likelihood that you will repay a loan satisfactorily.  Scores range from 300 to 850.  A score above 720 is considered to be "good credit" and a score below 600 is considered "poor credit".  The score is typically based on the information in your credit report.  There are three major credit reporting agencies in the United States:  Equifax, Experian and Trans Union.  They each calculate their own FICO score which means when you ask what is my FICO you will probably get three answers.  Fair Isaac Corporation developed all three versions.  The exact formula for calculatiing the FICO score is a closely guarded secret.  However, Fair Isaac has disclosed the components:  punctuality of payment, how much credit you have vs. how much you use, length of credit history, types of credit used and how many credit reports have been run on you recently.