Since I’m not the U.S., I had no idea what FICO meant before the study. FICO score means Fair Isaac Corporation, a company based in California. FICO is simply not the credit score of a person. A credit score can be used by a potential lender to make a trial on whether to grant you credit or not, for example, when you request a new credit card or home mortgage. Therefore, if you’re in the U.S., the FICO score is very important to you. What is a FICO score do? A FICO score places a value on the types of credit accounts you hold or have held, and your credit history in maintaining those accounts.
The scale of FICO score ranges from 300 to 850, with most people in the United States in the 600-850 range. Factors that affect your FICO credit score at all There are five factors that determine your FICO score: 1. Your payment history. This account of a 35% very important – most FICO score factors. As expected, paying your bills on time you get a good score, while paying them late on a consistent basis is the desire to reduce the score of your FICO score. If you have had debts referred to a collection agency, which is even worse, while the bankruptcy is the worst. 2. How much do I owe you. Another obvious factor that FICO will be taken into account in arriving at a credit score. This represents another 30% of your total FICO score.