Who is Fico?

Fair, Isaac and Company (FICO)

FICO is the acronym for Fair Isaac Corporation, a publicly-traded corporation (under the symbol "FIC") that created the best-known and most widely used credit score model in the United States. The FICO score is calculated statistically, with information from a consumer's credit files. The FICO score is primarily used in credit decisions made by banks and other providers of secured and unsecured credit. Banks and other institutions using such scores as a factor in their lending decisions may deny credit, charge higher interest rates, demand more collateral, or require extensive income and asset verification if the applicant's FICO credit score is low.

Although Fair Isaac sells creditors and borrowers "the borrower's FICO score," as if it were a single number, the company uses different scoring methods to rate a borrower's suitability for three types of credit—mortgages, automobile loans, and consumer credit— reflecting the loan default risks inherent to these different types of lending. It is not unusual for these scores to differ—by 50 points or more—for the same borrower. The score also depends on what credit reporting agency the data is obtained on, since not all creditors report to all three.

FICO Tips

Improving Your Payment History

  • Pay your bills on time.
    Delinquent payments and all collections can have a major negative impact on your score.
  • If you are having trouble making ends meet
    Contact your creditors or see a credit counselor. This won't improve your score immediately, but as you begin to manage your credit and pay your bills on time, your score will improve over time.
  • If you have missed payments
    Get current and remain current. The longer you continue to pay your bills on time, the better your score will be.

Available Credit

  • Pay off your debt rather than moving it around.
    The most effective way to improve your score in this area is by paying down all of your revolving credit.
  • Keep balances low on credit cards and other "revolving credit".
    Having large amounts of outstanding debt can affect your score negatively.
  • Don't close unused credit cards as a short-term strategy to raise your score.
  • Don't open credit cards that you don't need just to increase your available credit.

 

Disclaimer: The information provided in this site is not legal advice. All information is general information, some of which pertains to legal issues involved in the subject matter. Credit Matters Inc. is not a law firm and is not a substitute for an attorney or law firm. Your access to and use of this site is subject to additional terms and conditions.

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Mortgages

  • Mortgage eligibility
  • Loan to Value
  • Mortgage Insurance
  • Rent/Leases

Insurance

  • Insurance premiums
  • Car Insurance
  • Home Owners Insurance
  • Why it matters

Employment

Interest Rates

  • Mortgages
  • Automobile
  • Credit card
  • Store Financing

 

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How to Read a Credit Report

Obtaining Your Credit Report

Mechanics of Credit Scoring

Members Only

  • Why Credit Scores?
  • Who is FICO?
  • Fair Issac Corporation Speaks Out
  • Credit Card Debt Affects Score
  • How Do Inquiries Affect Score?
  • Different Types of Scores
  • What is a Good Credit Score?

Obtaining Your Credit Score

  • Online Vantage Scores Are Insignificant
  • Types of Scores That Matter

 

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Credit Management Principles

  • How Many Trade Lines Should You Have
  • Recentness of Account Activity
  • Length of Payment History
  • Managing Revolving Debt - Credit Cards & Lines of Credit
  • Late Payments – What You Need to Know
  • How Inquiries Affect Your Score
  • Paying Collections or Defaulted Accounts
  • Your Debt-to-Income Ratio (DTI) Impacts Loan Approval

Credit Restoration

Establishing Positive Credit

 

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Debt Validation

Members Only

Debt Settlement

Members Only

Credit Counseling

Members Only

About Chapter 7 Bankruptcy

  • What it is
  • How it works - rules
  • How it works - process
  • Should you file for bankruptcy?
  • Impacts of bankruptcy on your credit report and score
  • Reaffirmation - assets you want to keep
  • Common mishaps and selecting a good attorney

About Chapter 13 Bankruptcy

  • What it is
  • How it works - rules & process
  • Should you do it?
  • Impacts on credit
  • Paying off early
  • Compared to chapter 7 - pros/cons

Collection

  • How it happens
  • Your rights - FDCPA
  • Statute of Limitations - by state
  • What to do if you are harassed
  • Impact on credit
  • How they affect mortgage financing
  • Paying collections - do's and don'ts

Charge-Off & Profit/Loss

  • What it is
  • How it works
  • Impact on credit score and financing approval
  • Affect on mortgage financing
  • Paying charge offs - do's & don't

 

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Judgment

  • What it is
  • How it happens
  • What to expect and do if you're served with a law suit
  • Impact on credit
  • Garnishments
  • Satisfaction - payoff recordings
  • Impact on real estate and mortgage financing

Tax Lien

  • What it is
  • How it affects financing
  • Impacts on credit
  • Satisfying/release - get & keep your proof

Child Support

  • What it is it?

 

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Foreclosure

  • What it is
  • Impact on credit
  • Stopping foreclosure
  • Deficiency judgments
  • Sample letters

Repossession

  • What it is
  • How it works
  • Impact on credit
  • Deficiency judgments

 

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Identity Theft Protection