Its important to know “ what is FICO score?” if you are working on credit repair. Although its commonly referred to as "whats my credit score?", your credit score and FICO score can be two different things.
FICO stands for Fair Isaac Company. This created a mathematical scoring system that rates your credit. So its commonly called a credit score. Mom tends to use it that way too.
However, its like comparing Nike Shoes and athletic shoes. FICO is like the brand name for a specific model, while credit score is just a generic term.
Before we get to "what is my FICO score", its really important to understand what is FICO score and how it is used.
What mom will share here is based on the most current information at the time of this writing.
What is FICO score?
Maybe you are new to this term "FICO" so you are asking mom what is the purpose of it.
A FICO score is what a lender -- bank, mortgage company, credit card company, car financing company -- uses to help determine if you get a loan or credit and what rates to charge you for the interest. Like the game of basketball, the higher the FICO score, the better you rank, the lower the FICO score, lower your credit ranks so you get charged higher interest rates.
The real formula is a secret, however, when mom was a mortgage loan officer, she went to a FICO score training seminar. The best they could share with the group at the training was the factors the scoring model looks at and how much weight it gives to those factors. So what mom shares here is the best information on what she learned, the rest is held in close guard. She will let you know what the FICO score includes and how your credit is considered.
Your FICO score is a rating that considers the following information on your credit habits:
That is a lot of information when you ask the questions "what is FICO score?"
So for you to tke the steps in credit repair to improve your FICO score, you have to take a lot of things into consideration.
And in order to repair credit, find out which of the credit factors is affecting you and what you can do to fix your credit score in a positive way.
Take a look at some of the articles below to help you better understand FICO. If you are ready to move onto credit repair, you can start by taking mom's advice to fix your credit score.
FICO® Score Calculation - Gain insight into how your FICO® score is calculation and understand how if can be used to your advantage.
FICO® Score Chart - Using the FICO® score chart will help you determine what kind of credit risk you are to potential lenders.
What Does FICO Stand For? - Where do the FICO letters come from and how they are used in regards to credit repair.
Read more About Credit Repair
Return to top of What is FICO score?”
Go Home to Credit Repair Mom