About Your FICO® Score
The FICO® score, developed by Fair Isaac, the pioneer in
credit scoring, is a number between 300 and 850 that lenders
use to determine your credit risk.
Your FICO score
is calculated using a mathematical equation that evaluates the
information in your credit file and compares it to patterns
in millions of other credit files. The score can then help to
identify your level of credit risk. The higher your credit score
the more likely you are to be approved for loans and receive
favorable rates.
More than 70% of the 100 largest financial institutions use
FICO® scores
to make billions of credit decisions each year, including more
than 75% of mortgage loan originations. Equifax and Fair Isaac
demystified credit scores by being the first to provide consumers
access to their FICO® credit score. Instant
FICO ScoreCheck.
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Why Lenders Use FICO Scores
Typically, lenders want to see how you have managed your credit
obligations in the past to help them determine if they should
approve your request for credit now, and to help them determine
the terms of that credit.
A FICO score
is a valuable guide to future risk based solely on credit file
data. The higher the score, the lower the risk to lenders when
extending new credit to a consumer. The score is an objective
measurement of your credit risk at a particular point in time.
Lenders may also evaluate other types of information -- such
as data you provide on the credit application (for example,
income, how long you have lived at your residence, other banking
relationships you may have) in their loan evaluation process.
Instant
FICO ScoreCheck.
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How to Read Your FICO Score
Your FICO score
is divided into the following sections:
Summary
The 'Summary' page shows your actual score as of the
date it was generated, along with a description of what your
score means. More detailed explanations of what your score means
to you are available in the following sections.
Top Positive Factors
The positive factors listed in this section reflect areas of
your credit behavior that are better than average, translating
into a higher FICO® score. Continuing to manage your credit
this way will help to increase your FICO® score over time.
These factors are provided in order of impact -- the first listed
has affected your FICO® score most positively and so on.
Top Negative Factors
If your score is high, these reasons may seem picky and you
should not consider them to be serious flaws in your credit
history. They are simply factors on which you did not score
the absolute maximum possible points and have some room for
improvement. If your score is low, these factors can help you
to understand how to better manage your credit.
How Lenders See You
A majority of lenders use FICO
scores as one method to estimate an applicant's credit
risk. People with high FICO® scores are likely to repay
loans and credit cards more consistently than people with low
FICO® scores. Although FICO
scores are remarkably predictive, no one can predict
with certainty whether or not an applicant will repay a credit
account. Instant
FICO ScoreCheck.
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FICO® Score Ranges
FICO® scores can range from 300 to 850, but the majority
of scores usually fall within the 600s and 700s. Since there
is no one universal score cutoff used by all lenders, it is
hard to say what a good score is outside the context of a particular
lending decision. For example, a score of 750 may qualify you
for a platinum credit card, whereas a score of 675 may indicate
you are a better match for a standard card.
Your lender may be able to give you guidance on the criteria
that it uses for a specific credit product. Based on the general
population's FICO® scores, the ranges and percentages of
scores are:
- 20% are above 780
- 20% are in the range of 745 - 780
- 20% are in the range of 690 - 745
- 20% are in the range of 620 - 690
- 20% are below 619
While many lenders use FICO® scores to help them make lending
decisions, each lender has its own strategy, including the level
of risk it finds acceptable for a specific credit product. Instant
FICO ScoreCheck.
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The FICO® Score Simulator is a powerful tool to help you
determine how actions can affect your FICO® score -- both
for better and worse. There are two options for simulating how
certain actions might affect your FICO® score:
Suggested Best Action
Assuming that all accounts and account balances remain the same,
this option helps you determine which action may have the biggest
impact on your FICO® score.
Choose Your Own Action
This option presents several possible actions for you to choose
from, and then simulates how taking that action might affect
your FICO® score. Keep in mind that the results of different
simulations are not necessarily umulative. In other words, taking
two separate actions, each of which could raise your FICO®
score 20 points, does not necessarily mean that your FICO®
score will go up 40 points.
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Equifax Credit Report™ Score
Power ™for Instant FICO Credit
When you purchase Score Power®, you receive access to your
Equifax Credit Report™ at no extra charge. It reflects
the information in your credit file as of the date you purchase
the product and is available to review for a full 30 days. To
learn more about your Equifax Credit Report™, click here>>
Score
Power ™
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