![]() ![]() ![]() This metric includes several factors like the number and severity of late payments and the presence of adverse public records like lawsuits and bankruptcies. Here’s what impacts your FICO Score.Īccounting for 35% of your credit score calculation, payment history is the most impactful component of your credit score. In general, FICO scores are calculated based on five major factors, each with its own weight. While FICO Score 8 is still the most widely used version, the majority of auto lending scenarios use FICO Auto Scores, and mortgage lending typically uses FICO Scores 2, 4 and 5. In addition to FICO’s base scores-FICO Score 8 and FICO Score 9-the company has a number of industry-specific versions, including for mortgages and auto lending. Specific criteria and considerations vary slightly, however, depending on the type of FICO Score. Using this data, FICO scores are calculated based on five general metrics: payment history, amount owed, length of credit history, credit mix and new credit. That said, lenders typically view FICO scores above 670 as good while the official FICO scale classifies scores between 670 and 740 as “Good.” How the FICO Score WorksįICO scores are calculated based on information collected by the three main credit bureaus-Experian, Equifax and TransUnion-and summarized in a consumer’s credit report. What is considered a good FICO Score depends on the lender or creditor evaluating a consumer’s credit profile. Borrowers with higher scores have higher approval odds and greater access to competitive rates. ![]()
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