The news has been riddled lately with stories of the power of a positive credit score, and what you can do with it. But, since my job as real estate agent is helping folks buy homes, and as a Texas Affordable Housing Specialist supporting home ownership retention - I am going to give a quick refresher on what makes good FICO score, and how to get one.

What is FICO? - It is an acronym for Fair Isaac Corporation, and that Fair is not as "in plays fair with others" rather a engineer named Bill Fair, and Isaac a mathematician provided consulting services in decision management. They developed the FICO score to rank credit risk, which all 3 major US consumer reporting agencies adopted.

What makes up the score?

  • 35% = Payment History

    • On-time payments or delinquencies. More emphasis is put on the most current pay history

  • 30% = Capacity

    • By totaling your monthly loan payments, including credit cards, student loans, car loans and any other monthly payments. Do not include rent or mortgage. Then list your monthly income after taxes. Then, divide the total owed by the total earned. You are considered to be in debt danger zone at 25%. Consider reducing your debt level by cutting your spending and diverting those funds to your credit payments.

    What makes a Good FICO Score

     

    Read the Full Story Here

 

0 Comments on What makes a good FICO Score?
What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
My_pic_color_framed_rgb

Jay Myers

Highland Village, TX

More about me…

Fathom Realty

Address: 229 Patricia Ln, Highland Village, TX, 75077

Office Phone: (469) 444-0844

Cell Phone: (972) 510-7800

Email Me



Links

Archives

RSS 2.0 Feed for this blog