FICO Score

[Jim Brothers]

What is a FICO credit score and how is it rated and what are the score amounts?

[Mac Walker]

FICO (Fair, Issac & Co.) score is a point rating of your credit history, basically. For more info, and to buy yours for $12.95 (I believe) go to www.myfico.com. It has good info about the score. I believe, if you live in CA, you can get one free. It is not the sole scoring or judgment system, but it is a major starting place, so I hear.

[the refiman]

Don't waste your money.The score you get is not your true score. This is propritary information and Fair Issac forbids consumers from knowing their real scores. What they did was create a simulated program that contains some of the score factors in order to give you a score. But it will be different than any lender will see.

Credit scoring uses a highly secret formula to assign a number or score to each consumer, based on certain secret factors.(they refuse to reveal the factors). The scores range from 300 - 900. the higher the score the lower credit risk. Scores above 660 are considered good. Over 700 excellent. 600 -630 marginal. 550 - 599 not very good and under 550 bad.

Scores are the main ingredient in determining whether or not to loan money.

Genneraly the lower the score the higher the interest rate you will be offered.

If yours is under 620, forget about the great rates you see on tv and newapapers.

Good Luck,

[rmurray]

I have heard and seen the same about some of the score selling programs on the net...
Actually there are different score models for different things...Auto
Ficos, credit card Ficos and mortgage Ficos all use different formulas...I have seen it many times...this week had a lady in with a net score..When I pulled mortgage report the scores were 70 points lower...Of course her file was 2 months old...which is also useless..
Fico scores can and do change daily..They are a picture of what is in the file that moment..and any new entry from a creditor can and will change the score...
You are right about the formula...It is a better kept secret than our military top secrets...I have recently seen very good folks with NO late ever..No collections..3 to 5 trade lines and score as low as 570...Then I have seen others with tax liens, bankruptcies, collections..all older than 2 years...but very good mortgage, auto and a few good credit cards in the last 2 years score as high as 750...

Ficos also effect insurance rates and availablity...If you check out this study you will see why...OUCH..

http://www.michigan.gov/documents/cis_o ... 1820_7.pdf

Of course you are also right that an acceptable credit score is only the beginning of the process...

[Mac Walker]

I am going to respectfully disagree with refiman above - I got my score and reviewed my credit - it made sense - and I will not let anyone try to convince me that my credit is less than stellar and therefore I have to pay a half-point higher. That is why California passed the law forcing annual disclosure. It is true that Fair, Issac will not reveal their scoring algorythm - it is a trade secret, not a weapon.

[Shelly Griska]

I recently received an offer in the mail for an unsecured loan at a relatively low rate that would allow me to consolidate all of my credit cards and pay them off in a set period of time, at considerable monthly savings. I am wondering, though, how this will affect my FICO score. If I have one large loan ($15,000) and several empty credit accounts, is this preferable to several all-but-maxed credit cards? As far as my credit goes, I have no late payments or anything of the sort. According to one of the calculators online, I have a FICO score of 658, and the explanation provided with the score said that it was the percentage of my cards being charged up that was bringing my score down.

I am planning on trying to get pre-approved for a mortgage on a mh in the next month or so -- waiting for w2s to come in so I can get my tax return for use in my downpayment. I've heard one shouldn't make any "rash moves" before applying as it looks suspicious, but on the other hand, if I get this loan, I'd have a lot more money available for my monthly mortgage payment. Advice, anyone?

[rmurray]

First...if that FICO score is accurate...see above post for the discussion of the various scores..you will have NO problem qualifing for a mortgage as long as you can afford all the payments...

Empty credit cards are nearly as bad as full cards...the best score is to keep the cards about 40% full..

One dirty little secrets the debt consolidators forget to tell you...Nationaly..80% of those who do what you plan on doing have full credit cards again within 12 months AND owe the debt loan...If you do this..CANCEL the cards...

Clark Howard...the radio personal finace guru..has a plan for those who cannot bring themselves to cancel all cards...you know..."I will keep them in case of emergencies type of thinking"...He suggests that you put them into a tupperware type container...fill it with water and put them into the freezer...This way you have to really work to use them..

You do not need to wait to move forward..You will not need your downpayment for weeks after you apply..As a matter of fact you might need a copy of the refund check to verify your funds...if you cash it without copying you might have to wait 90 days with the money in your bank...Go talk to a good mortgage originator now and start the wheels rolling...
Good Luck