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2.
What is my credit score – FIDO or FICO or whatever you call it?
When
you apply for credit, creditors use a scoring system to evaluate the probability
you will repay the debt in a timely manner. The most commonly used system was
developed by Fair Isaac & Company (hence, "FICO
score") by analyzing millions of consumers' credit bureau reports. The five
most important factors used in calculating your FICO score, which can range from
300 to 850, are listed from most to least important:
 |
Payment
history; |
|
Amount
owed; |
|
Length
of credit history; |
|
Amount
of new credit; |
|
Types
of credit in use. |
Your
FICO score can impact the interest rate you pay on credit card accounts, as well
as installment and home loans, even whether you get insurance or not. So, the
more timely your debt payments, the less you owe (both overall and as a
percentage of your available credit limits), the longer you have shown an
ability to pay on time, how much credit you have recently acquired or inquired
about acquiring, and, finally, the type of creditors you use (for example,
high-interest lenders vs. normal banks), all play a part in determining your
FICO score.
You
may want to consider checking your credit from time to time. The three main
credit bureaus are:
|
Equifax:
800-685-1111 to order credit report;
800-685-5000 for disputes;
|
|
TransUnion:
800-888-4213 to order;
(New Empirica) 800-916-8800 for disputes;
|
|
Experian:
888-397-3742 to order;
(TRW)
800-583-4080 for disputes.
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