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Posted on August 19, 2008 by Balva Rudick | Posted under Finance
FICO Score Chart Explained
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The term FICO comes from Fair, Issac and Company and it is a score that is calculated from the data the national credit bureaus, Experian, TransUnion and Equifax, have on your credit history. Each of these agencies has a method for calculating your credit score, based on your credit history. Details like credit cards, or loans, are kept by these agencies. If you ever asked for a copy of your credit report, you noticed that they also issue you a score chart. What does the chart contain? The chart contains certain numbers that show the evolution of several parameters that have to deal with your credit score. Complicated mathematical techniques are at the base of this chart, and we will try to explain part of them, as follows. So the chart contains: - the sum you have to pay for open credit accounts- any sign of delinquency related to any accounts- the number of debit cards and credits cards you own- the number of credit accounts that you still have to pay for- the number of credit accounts that do not relate to credit cards- your entire payment history from the start until the present- the number of inquiries addressed for your credit file, by other financial institutions- it shows if you reached the monetary limit on all credit cards you have- the amount of time for which you established your credit- the number of times you access your credit accounts- if one of your accounts or more have been checked by collection agencies- the number of inquiries made on your open credit accounts- the number of credits for which the balance is zero Here are some statistics on FICO stores all over the United States so you can compare with other consumers. - Only 13% of the consumers have a credit score of 800-850- For 27%, the FICO score is between 750-799- 700 to 749 is the score for 18% of American consumers- For 15% of the population, the credit score is 650 to 699- 12% of consumers have 600 to 649 as a score- 550 to 599 is where the credit score is for 8% of the population- 5% have a credit score of 500 to 549- Only 2% of consumers have a credit score of 300 to 499 It is important to know about your FICO score chart and the numbers related to it. The way you will be able to get other credits depends on how good your credit history looks. About The Author: Balva Rudick is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com |
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