Scoring your Credit - How's your FICO?

Many consumers today are familiar with credit scores. The major credit reporting agencies (Equifax, Experian and TransUnion) generate a credit score with each credit file for borrowers with sufficient credit history. This score, or FICO (the system was developed by Fair Isaac and Company, Equifax refers to the score as BEACON and TransUnion as EMPIRICA) is also used when Automated Underwriting Systems (AUS) review loan applications electronically.  The score is derived from data available in a credit report at a specific point in time, using past credit history to predict future performance with objectivity and consistency. The primary factors are:

FICO scores range from 350 to 900.  Higher scores indicate a better credit risk. Thus, the higher the score, the greater the variety of loan options available, some requiring less down payment and/or less documentation than others.   All consumers may now obtain one free credit report per year per bureau.  Visit  annualcreditreport.com  for details.