FICO Score

A FICO score is in reality a credit score and can tell if you can receive a credit card or not. If you are eligible it can determine how much of a limit you can have on your credit card. This score can carry a lot of impact on your future borrowing and can be disastrous in some cases. The information is collected in your credit report and creditors can use this to determine if you can pay back any monies that you may borrow from them. If you have a high score it is good so the higher your score the better risk you are to the creditor. If your score ranges from 700 to 719 you are able to obtain favorable terms, 675 to 699 is still a good standing, 620 to 674 score may give you a little trouble to get the credit you want, 560 to 619 you will have trouble obtaining credit and if your 500 to 559 then you need to start improving your score.

The score will give you a certain percentage in five categories such as your payment history takes thirty five percent, the amount you owe takes 30 percent, the length of your credit history takes fifteen percent and the types of credit you use takes up ten percent. Lenders look at your payment history and the 35 percent is made up of such things as credit cards, retail accounts, installment loans, finance company payments and mortgages. If you have had any past due accounts they will look at this and at the balance that you have and if you have had bankruptcy in the past they will look at that also. The amount owed, which takes up thirty percent, is based on what you owe on your credit at the time. It also takes into consideration how many accounts you have open at the time you're looking for more credit.