![]() Some of them use FICO algorithms to calculate scores, while others use their own proprietary models to calculate their own credit scores. The three main credit bureaus ( TransUnion, Equifax, and Experian) continually collect new information about your credit history to update your credit scores each month. The only information we have access to is the five factors impact your score: When you apply for a credit hard, lenders will examine your FICO Bankcard Score, while mortgage lenders will look at your FICO Score 8.īecause FICO uses a proprietary algorithm, we don’t know how a FICO Bankcard Score is calculated differently than a FICO Score 8. When you apply for a car loan, this is the score lenders will focus on to determine your creditworthiness. While the most commonly used credit score is your FICO Score 8, the company calculates several different scores to accommodate different kinds of loans.įICO Auto Scores, for instance, are customized to the demands of the auto industry. According to FICO, around 90 percent of all lenders in the United States use their scores to make lending decisions. Since then, FICO Scores have become the standard measure of credit risk in the United States. William Fair and Earl Isaac established the company in 1956 to create an objective way of calculating credit risk (the risk that lenders won’t get paid back). The bulk of these scores are calculated by Fair Isaac Company ( FICO). Many people are surprised, however, to find out that they actually have 49 credit scores. ![]() When we think of our credit score, we often think of a single three-digit score. ![]()
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