This program is sure to bring awareness and understanding of credit and credit scoring to an entirely new level.
Jackie Pham, V.P.
First American Title, CREDCO
FICO® Score
The FICO® score is a number that summarizes our credit risk,based on a snapshot of our data at the three national credit bureaus, Experian, Equifax and TransUnion, at a particular point in time.
The FICO score, which ranges from 300 to 850, evaluates our payment behavior, how much we owe and our payment history. So, for a bank or a creditor who’s making a decision about extending credit to us, the higher our score, the more likely we are going to pay our bills on time and be approved for lower interest rates and fewer fees. The lower our score, the more likely we are going to miss paying some of our obligations on time in the future, and if approved for credit, we’ll be charged higher rates and exorbitant fees.
All three credit bureaus use the FICO scoring model developed by Fair Isaac in 1980, even though all three use different names.
• Equifax: Beacon
• Experian: Experian/Fair Isaac Risk Model
• TransUnion: FICO® Risk Score, Classic
In general, when we talk about “our credit score,” we are talking about our FICO score.
And when creditors request our scores from the three national credit bureaus to make a credit decision about us, they are given FICO scores. However, when we purchase our credit scores directly from the credit bureaus, with the exception of Equifax’s Power score, we are without a doubt getting scores that are totally unrelated to Fair Isaac and the FICO score, such as Plus Score and Credit Expert Score from Experian, Trans-Risk score from TransUnion/True Credit and Vantage score from all three.
These generic scores are called “educational scores” and sold to us under the pretense that they are the actual scores that lenders and creditors use when making a credit decision about us. Sadly, the three credit bureaus don’t tell us the truth about their credit scores in their advertising campaigns.
Fair Isaac’s MyFICO® Web site is where you can be confident that you are getting your REAL FICOscore. Knowing your FICO score is the smart thing to do when we you are applying for credit; whether it’s a credit card, a car loan, a student loan, a business loan or a mortgage. Go straight to www.myfico.com and get your real FICO score! Remember, getting your own score will not hurt your FICO score; it will simply make you aware so you can plan better when applying for any type of credit.
Would you like to learn more about FICO scores?
Would you like to learn about the FICO Auto Industry Option Score?
Would you like to learn about the Bankcard Industry FICO score?
Would you like to learn the truth about the three credit bureaus’ own scores?
Would you like to know how to correct errors on your credit report?
Would you like to know how to achieve a higher score?
Would you like to know how to revive your credit score during today’s rough times?
Would you like to know how to minimize the negative effect of short sale & foreclosure?
Would you like to know how to re-establish your credit score after bankruptcy?
And much more……………
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Copyright 2009 Financial DVDs. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without the consent of Financial DVDs Inc.
Certain information provided by Fair Isaac Corporation, San Rafael, California