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What is FICO?

FICO stands for Fair Isaac Corporation . It was established in 1956 by an engineer and a mathematician. This is the method that is still used today to calculate your credit worthiness.

Your FICO score can be divided into about five major factors. Those factors include your payment history, the amounts owed, how long you have established your credit history, the amount of new credit/debt you have and the types of credit cards you are using. The two factors that accounts for the major part of the decisions to approve or deny your credit applications are your payment history and the amount of debt you have. These two alone account for more than 60% of decisions to extend credit when reviewed.

Not only do lenders look at your FICO score, but they take a few other factors into consideration. Those things include your employment history and your income. Creditors look for stability when comes to your employment and they weigh out how much debt they believe you can handle with your given income.

Take time to evaluate these key factors and you will have a general idea of what you are facing when it comes to your credit worthiness. Contact Reflectionz Real Estate for a credit counseling session with one of our Credit Specialist for a detailed review of your personal situation.