ABOUT CREDIT
What is a FICO® score?
A FICOÂ is a number generated by a mathematical formula that is meant to predict credit worthiness. The most common of the credit score models. is the FICO score created by Fair Isaac and FICO is an acronym for Fair Issac COmpany. The FICO score ranges from 300-850 and is intended as a predictor of whether or not you will be 90 days late on a loan obligation. The three major credit bureaus provide information to the FICO scoring program which uses five factors to calculate a score. The reason that scores differ from bureau to bureau is the information provided to them is not always the same. Fair Isaac uses thousands of credit reports to calibrate the FICO scoring model and is very secretive of the exact formula. The five factors that make up a FICO score are outlined in the graph below:
Percentage Breakdown of your FICO Score
What is a Good FICO score?
FICO score of 700 and higher means Excellent or Very Good credit. Certain lenders offer better rates and/or discounts if you are over 720, 740, etc.
FICO score from 680 to 699 means Good. Pretty much you can get a normal loan.Although in the tough lending environments of today, you will pay a premium compared to having a FICO score above 700.
FICO score from 620 to 679 is OK. You won’t be denied for an FHA loan, but conventional financing is much more difficult. You will  not qualify for the best rates on car financing and will have a hard time getting a credit card. but the terms are not going to be too generous. Still you are officially a nice person.
FICO score from 580 to 619 … . Banks, and sub prime lenders take advantage of you. This is where Bad Credit officially starts. You are still able to get a car loan but you lose any negotiating power as the banks see you as risk and charge you heavily for it.. Fat commissions for them, much more expensive loan for you. Chances are you will take it since you have little choice
FICO score from 500 to 580 is where the real trouble starts. Your credit is bad, period. You’ll get your loan and you won’t like it. But you should take it anyway, because that could be the beginning of your fresh start. Way to get away from bad credit.
FICO score of 499 and below You are in serious need of help. There is very little what can be done and while it is still possible, the terms are going to be simply too brutal. The best thing is to contact us today - Your FICO credit score can be improved!
