Information about your FICO Credit Score

Credit bureau scores are often called "FICO Credit Scores " because most credit bureau scores used in the US are produced from software developed by Fair Isaac and Company. FICO scores are provided to lenders by the three major credit reporting agencies: Equifax, Experian and TransUnion.

FICO scores provide the best guide to future risk based solely on credit report data. The higher the score, the lower the risk. But no score says whether a specific individual will be a "good" or "bad" customer. And while many lenders use FICO scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable for a given credit product.

The Fair Isaac Credit Organization (FICO) score has been one of the main tools for determining the result of credit requests for the last few years, and is very important when it comes to the decisions creditors make regarding your loan requests. It is, however, going to be changed slightly by the introduction of risk-factor scoring.

Risk-factor scoring is a way of returning a more precise representation of your FICO score, which will be a better, more 'forgiveable' representation to the creditors you are trying to borrow from. With this new representation it is hoped that this new way of viewing scores will ease the tight specifications on scoring, giving people that have been in a gray area of acceptance in the past a better chance of being approved for the credit they are applying for.

Even though the specifics of this new scoring system are not publicly known, it is being assumed that this new scoring system will give the lenders the advantage of predicting whether or not there will be a likelihood of delinquency in the payment of bills.

One of the main ways to improve your FICO score is to take the next 2-3 years, make every payment on time to your creditors, and not be late or have any problems that would add another negative mark to your score. This, however, is not always true. There are a number of scoring differences and misunderstandings that may not be predictable, which will still result in a bad credit score.

If you don't have 2-3 years to wait to get your credit history repaired, please fill in your information below to receive your Free Credit Consultation.