You donâ€™t have to be a student of finance to know that certain things are extremely important to both your long term and short term financial prosperity. Along with a few other financial buzzwords that have become popular topics in recent years, your credit FICO score is one of them. Some people donâ€™t truly understand their credit FICO report score or how to raise their credit from the dead and because of that, they are often left to wonder what happened to their planned financial prosperity. The first step to understanding your score is to obtain your credit FICO score, which is something that has become much easier in the last decade.
What is a credit FICO score?
Many people know what their credit score is, but they have no idea how it came about or even what FICO stands for. It comes from the originators of the score, a company known as Fair Isaac & Company. That company recognized, as early as 1950, that there was a serious problem with the way lenders looked upon their potential borrowers. They started working on a system that would take past credit history and spit out a number that reflected both how capable and how likely borrowers would be to repay their bills on time.
How is the credit FICO score calculated?
If you have ever gotten your FICO score report and wondered what in the world it means and how itâ€™s calculated, then you arenâ€™t alone. Plenty of people are right in that boat with you. For all intent and purposes, your FICO score is calculated using five primary criteria. They look at other things, as well, but the following five things are the primary indicators that a person is going to be able to repay their bills on time.
- Number and frequency of late payments
- How long a person has had credit
- How much credit a person has used relevant to how much credit they have
- How long a person has been living at their current home
- Any negative strikes against your credit report, including bankruptcy, foreclosures, or collections, among other things.
How do I get a credit FICO score?
Luckily for consumers, there are plenty of ways to get your credit FICO score. The three primary credit reporting bureaus all provide this number with their credit reports, but they may not all be the same. When you get a FICO score from Equifax, for instance, it may be a different number than what Experian provides with their credit report. Depending upon what sort of loan you are looking to acquire, all of these numbers may be considered or the lender may just look at the one in the middle.
In order to get your credit FICO score, you need to contact one of the three major credit reporting bureaus and request a copy of your credit report. You must be sure to ask for the credit report that includes the FICO score, because some of the options will provide only your credit report without this pertinent information. They can either mail this information to your home residence or you can view it online, depending upon your personal preference.