Epic Debt Relief: Learning Center

FICO is the world's leading credit scoring company, but what does FICO stand for? FICO is the acronym for the company name: Fair Isaac Corporation. Most lenders and banks recognize this company as the leader in credit scoring and therefore use FICO scores to determine how creditworthy people are when they apply for loans and other forms of credit. The score that FICO gives any one person is based on many factors, and ultimately measures the likelihood that a person is going to pay back the credit they are extended or not.

If your FICO score is low, you will be less able to get credit when you need it. Additionally, finding out what your score is can be helpful in knowing whether you should even bother applying for various loans or lines of credit or not. There are five factors that are used in determining any consumer credit score, including:

-Credit History
-Amount of Debt Owed
-Length of History
-Recent Applications/Approvals
-Credit Types Used

The scale of credit scores ranges from about 300 to 850, but every consumer actually has three different scores. The average score for American consumers is 680. This is generally the consumer credit score. The other two types include auto loan scores and mortgage scores. These types of lending are separated because someone who might be likely to default on a credit card might be more likely to keep a mortgage or auto loan current. Because of all of the variables, the scores can vary dramatically in some cases. The three credit bureaus, TransUnion, Equifax, and Experian, all use the FICO scores to determine their own credit rating for consumers. Therefore, your FICO score and your score with any one reporting agency might prove to be quite different.

Keep in mind that your FICO score is federally regulated and that it is not able to consider color, sex, religion, race, marital status, or national origin in determining scores. There is also a regulation that requires creditors to disclose information to people who are denied credit explaining what factors influenced that decision.

For help with debt settlement, or to learn more about credit and debt, contact Epic Debt Relief today at 877-971-3232.