Have you ever heard of a FICO score, {{contact.first_name}}?
A FICO score is a credit score generated by the Fair Isaac Corporation.
This score is used to determine the amount of risk a lender is taking when offering you a loan.
A large sum of data is taken from five key areas to determine your score:
- Payment history
- The amount of debt you currently have
- Types of credit you are have used
- Length of your credit history
- New credit accounts
Back in the day, unfortunately, your trustworthiness was determined solely by your reputation.
Bias and discrimination invariably ensued, so…
FICO scores were introduced with the aim of providing a fair, tangible, and quantitative way to determine a person's creditworthiness.
Your overall score is listed as a number between 300 and 850.
700 to 749 is “good”
650 to 700 is “fair”
300 to 349 is considered bad.
These scores will affect your ability to receive loans.
For example, with a fair credit score, you may find it difficult to secure a loan with good rates, whereas with a bad score, you may not even be able to secure a loan at all.
FICO scores form the basis of 90% of credit decisions made in the US.
Now that you understand what FICO scores are, we encourage you to discover what yours is.
Should you find that the score is less than what you hoped it would be, don’t hesitate to contact us for professional assistance.
Helping you repair your credit is what we do best :)
