Get Free Credit Score – FICO Report

Josh Riverside asked:




Whenever you are applying for credit or purchasing or renting property, your FICO score will be looked at to assess your credit worthiness. Usually, the higher the score, the better your chances to get the required credit or loan.

FICO Scores have a range of 300 to 900 points. This score is arrived at by using scoring models and mathematics tables. The Fair Isaac Corp. has developed a computer model that takes into account different pieces of information about your credit status, both current as well as past. After gathering all this information, the model compares information to the credit status of thousands of other people and accordingly assigns you a score.

An average FICO score is usually considered to be around 720. However, that is not always the correct standard to be sure if you get the credit or not. It may happen that in spite of you having an average score, the lender has other conditions and parameters that you still need to qualify. A credit score that one lender considers acceptable may be regarded as unacceptable by other lenders for equivalent credit instruments.

The Fair Isaac model takes into account five aspects while appraising your credit worthiness. Your average FICO score can be adversely affected by past payment history, balance owed, length of credit history, amount of new credit, and the type of credit used. The FICO score fluctuates depending on credit activity. Please note that federal law prohibits personal information such as race, sex, religion or marital status to be disclosed for credit checks and that these factors are not accounted in your FICO score.

You can achieve and maintain an average FICO score by paying all your bills on time, not applying for credit too frequently, and reducing your credit card balance.

Gail

ehowfinance asked:

A FICO score that needs to be fixed is indicative of bad credit, and the first thing to do is to obtain a credit report. Use supporting documentation to fix a FICO score withadvice from a registered financial consultant in this free video on money management. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC

Tammy

Alison Cole asked:




The primary, but not the only users of your credit score are the lenders. But if you are applying for a job, some employers, and other businesses also consider the credit score in evaluating their applicants. Aside from credit application, credit scores are also used for various purposes. Hence, it is really important that you know how to get your FICO score.

FICO score and other types of credit scores are computed by employing scoring models and by consulting mathematical tables that have assigned points for various pieces of information that best foresee your credit performance in the future.

Calculating your FICO Score

The formula employed in getting your FICO score contains information that is based on various important factors. The 35% of your FICO score is based on your payment history. All lenders want a to know your credit history which includes your payment history on various accounts such as retail accounts, credit cards, finance company accounts, installment loans as well as mortgage loans. Public records and collection items such as bankruptcies and judgments are also included in your payment history.

Your outstanding debt comprises 30% of your FICO score. Of course, lenders will ask about your present indebtedness level because it will determine if you can pay the amount you are borrowing and still afford to pay for other current bills.

15% of your FICO score is based on the length or duration of your credit history. In general, the longer your credit history, the better your credit score is. The pursuit of new credit makes up 10% of your credit score. Before approving your loan, the lenders want to find out how many credit accounts you?ve opened and applied for. Generally, the fewer credit accounts you have, the better. The remaining 10% of your FICO score depends of your credit experience. The types and the number of accounts you have such as credit cards, mortgage, retail accounts and others can really make a difference.

Mathew

Carey Pott asked:




With interest rates going up and property values starting to appreciate at a slower rate or flatten out, a new kind of loan has started to become more popular. The 40-year fixed loan allows you to amortize the loan over a 40-year period instead of the usual 30 years. This results in a lower monthly payment, which can come in handy when rates are higher. There are some pros and cons to this type of mortgage. I will explain why I personally don’t like these loans except in special circumstances.

The main advantage of a 40-year fixed loan is that your monthly payments are lower. Since this loan is typically fully amortized (a small amount of principle is paid down monthly), the loan balance will slowly decrease each month. This is the main advantage of a 40-year fixed loan over an interest-only loan if your goal is to pay down principle. Another advantage is that while most interest-only loans have minimum FICO requirements of approximately 580, a 40-year fixed loan is available if your FICO score is as low as 500.

One of the main cons of getting a 40-year fixed loan is that over the course of 40 years, you end up paying a LOT more interest than a 30-year loan, with a payment difference that is fairly negligible. For example, on a 30-year fixed loan of $300,000 a borrower will end up paying $647,000 in principle and interest over the course of the loan. This is scary enough, but on a 40-year fixed it’s much worse – with the same loan amount the borrower ends up paying $843,000 after 40 years. And the worst part of all is that for the extra $196,000 the borrower ends up paying after 40 years, they end up with a monthly payment that’s only $45 lower!

Another disadvantage of 40-year fixed mortgages is that you end up paying a higher interest rate for the privilege of paying the lender so much more interest. Rates for a 40-year fixed are about 0.5% higher than a comparable 30-year fixed loan. This doesn’t sound like much, but over 40 years it adds up to a significant amount more interest – almost $200,000 in our example above! This is also part of the reason why the monthly payment difference isn’t very big between the two loans – although the payback period is lengthened, the interest rate is higher and the two almost even out.

One last thing that most people, including loan officers, don’t realize about 40-year fixed loans is that most of the time, especially in the sub-prime market, you can’t even keep the loan for 40 years. Most lenders write the loan with a balloon payment, which means that although the mortgage is amortized over 40 years, it’s actually due in full after 30 years. If you’re considering a 40-year fixed loan, make sure your loan officer explains the program to you completely and read the note carefully to make sure you’re getting what you think you’re getting.
As you can see, there are a lot more cons to getting a 40-year fixed mortgage than there are pros. So why would anyone want to get a 40-year fixed? The only time I recommend them is when the monthly payment difference of $50-100 makes a huge difference to you AND you don’t qualify for an interest-only loan. Interest-only loans are a much better way to keep the payments down, but as I mentioned above there are minimum FICO requirements that not everyone can meet. Only in these situations do I recommend 40-year fixed loans.

If you’re considering one of these loans I would highly recommend you look at a 30-year fixed loan instead if you plan on keeping the loan for an extended period of time, or an interest-only loan instead if the lower monthly payments are more important and you qualify. Just like any other mortgage, a 40-year fixed loan is a tool to accomplish a certain goal and it might be the right tool for you. Regardless it’s important that you speak with an experienced mortgage consultant who can guide you through the process.

Jack

Roy Thomsitt asked:




As I am not from the US, I had no idea what FICO meant before researching it. FICO stands for Fair Isaac Corporation, a company based in California. FICO, put simply, is a person’s credit score. A credit score can be used by a potential lender in making a judgement on whether to grant you credit or not, for example when you apply for a new credit card or home mortgage. Therefore, if you are in the US, the FICO score is very important to you.
What Does a FICO Score Do?

A FICO score places a value on the types of credit accounts you hold or have held, and your credit history in maintaining those accounts. The FICO score scale ranges from 300 to 850, with the majority of people in the United States in the 600 – 850 range.

Factors Which Affect Your FICO Credit Score

There are 5 factors in all which determine your FICO credit score:

1. Your payment history.

This counts for a very significant 35%–the most of the FICO score factors. As you would expect, paying your bills on time is gets you a good score, while paying them late on a consistent basis is will mark down your FICO score. If you have had debts referred to a collection agency, that is worse still, while declaring bankruptcy is the worst of all.

2. How much you owe.

Another obvious factor that FICO will take into account in arriving at a credit score. This accounts for another 30% of your total FICO score. It is not just what you owe already that affects your FICO score. Also taken into account is the amount of credit available to you. For example, if you have a credit line of $5000, but have so far only used $1000, that will be taken into account.

Your total amount of credit will be totalled, and compared to your annual income. So, loans such as car loans, mortgages, credit cards, store cards, will all be added together. Those who use most or all of their available credit will get a lower rating for this part of the FICO score calculation.

3. Length of credit history.

Another important factor that makes up 15% of your FICO credit score is the length of your credit history. The longer your credit history, the better for your FICO score. Additionally, though, a long history with any particular lender will be good for your credit score.

4. Type of credit mix.

The fourth factor taken into consideration is the type of credit mix that you have. For example, do you have only high risk unsecured type credit, or do you also have some solid secured loans such as a home mortgags? Those consumers who have a mix of credit have higher a FICO score. This fourth factor just counts for 10% of the total FICO score.

5. Number of new credit applications.

The last factor in the FICO rating is the amount of new applications that you fill out. If you have recently filled out a lot of credit applications, this will hurt your score because it puts lenders “on alert” that something may be wrong. This part of the score is worth 10%.

Lenders themselves will normally look at employment, income, length at current residence, and marital status, but these do not affect your FICO score. If you intend to borrow in the future, you do need to pay attention to your FICO score. If your FICO score is low, this could lead to higher interest rates, extra mortgage insurance when buying a home, and in some cases denial of the loan.

If you plan to take out a major loan, such as a home mortgage, it could be a wise move to get a copy of your credit report 6 months before you plan to apply. That will give you time to look over your history, to ensure there are no discrepancies. If you find inaccuracies, contact the Credit Reporting Agency in writing. They will have 30 days to investigate it, and then correct it if they find your claims are true. You may also want to ask for a revised credit report; they are required by law to supply you with one if an inaccuracy is found and corrected.

Maurice

Kyle Gentile asked:




In March of 2006, the three credit bureaus announced the use of a new credit scoring system called VantageScore. It was to combat the industry giant Fair Isaac and their scoring model the FICO score. The VantageScore came out with a lot of hype, but that was mostly in the minds of the media and consumers not the creditors who will be granting credit

One difference is the credit score scale. The FICO score uses a credit score scale that starts at 300 and goes to 850. The VantageScore uses a credit score scale that starts at 501 and goes to 990. The FICO scale is large with a range of 550 compare to the Vangtage range of 489. The credit bureaus also assigned a grade with their credit score scale.