The FICO is an acronym for Fair Isaac Corporation who first developed and used the system a long time ago. It is reputed to be an accurate and fair measure of a loan applicant’s credit worthiness. The score was developed in an effort to simplify the process of computing for risks involved in approving a credit application.

The FICO score also called the credit score rating is one of the most significant numbers in your economic life. It is a number representing the total statistical scrutiny and breakdown of an individual’s credit files. This short guide to the credit score chart was intended to give you a summary of what that 3 digit number called the Fico Score is all about.

Your credit rating is based on the data provided by one of the three major credit bureaus: Experian, Trans Union and Equifax. Income is not among the criteria used by these major credit information providers when computing a credit score.

The credit score chart range is from 300 to 900, but 849 is the highest possible score that an individual can get. Average credit score for Americans is about 720 which is really a fine score.
Credit ratings below 500 are considered unacceptable credit risk while ratings from 500 to 559 are very poor, the credit applicant will have a hard time to get a loan if ever, and it will be on very onerous terms and high interest rates.

Ratings from 560 to 619 are still a poor score but never the less improves the chances of loan approval as compared to the previous group. You are still considered high risk and the interest rates should still be high.

Scores between 620 to 659 means a better chance of loan approval and better interest rates. Interest rates in this category will still be higher than market rates.

Rankings between 660 to 699 are considered good. You should not have any difficulty getting a loan. The terms of the loan will be less hard and the interest rates attractive.

Ratings between 700 to 759 are a very good credit score. It should give you admission to good loan offers at attractive interest rates.

Scores from 760 to 849 are excellent scores with 849 as the highest probable rating. Best loan terms and interest rates in the credit market should be granted to you.

Get your FICO ratings now. It will give you the opportunity to gauge your own credit worthiness and learn what your creditors are saying about you.

By: Peter Sibierski

About the Author:

Erika

Helen Hecker asked:


Every day, consumers pay huge sums of money to credit-repair service companies that promise a quick credit fix in an effort to handle disputes, improve their ratings and get a good FICO score. And almost all of the time, they find that their money is completely wasted.

Having good credit can help you get much better interest rates for a car or home loan as you may know. A bad credit history can leave you stuck with loans that carry sky-high interest rates and bad terms that are tough to get out of. At times some of your bad credit can cost you a needed job.

The offers you find may seem attractive but ‘let the buyer beware’! Some legitimate credit-repair companies exist but many of the claims that you hear advertised are usually false and just a way to part you with your hard-earned money.

If you’re thinking about signing a contract with any credit-repair service you should at least know your rights. Please be aware of the following five reasons why you should not commit:

1. If the credit-repair company charges an upfront fee – do not commit. Under the federal Credit Repair Organizations Act – which was enacted to take care of deceptive and abusive credit repair business practices – it makes it illegal for companies to charge consumers BEFORE they perform any credit-repair services. So it’s against the law for credit-repair companies to seek payment from you until they have fully completed the repair services they have promised.

2. If the credit-repair company says it will, on your behalf, dispute information in your file, including items you know are correct, then beware. If the service’s plan is to lie, or dispute what you know to be accurate information then it’s not a reputable company. While YOU can dispute any information in your credit files that you think is incorrect, no credit-repair company has the right to remove any accurate, current information from anyone’s credit report.

And if the information in your file is totally correct good or bad, only the passage of time can reduce the impact of any negative information. Negative information such as late payments can stay in your credit file for as long as seven years. And a personal bankruptcy filing can take as ten years. Any negative information on your credit scores lessens as the years pass by.

3. Before you sign any contract, the company has to provide you with a free copy of the FTC’s “Consumer Credit File Rights Under State And Federal Law.” These guidelines clearly outline what the service can and cannot do.

4. The company may tell you they can get you a new credit identity by applying for an employer identification number, or EIN, from the IRS (Internal Revenue Service.) They may tell you that you can use this number instead of your Social Security number. But if you don’t own a business, then this isn’t a legitimate way to repair your personal credit history. And it’s a federal crime to get an EIN under false pretenses.

5. If the credit-repair service tells you not to directly contact any of the credit-reporting agencies or credit bureaus, you don’t want to hire them.

Simply put, you can easily clean up your credit report and repair your credit report history yourself. Everything a credit-repair company promises they can do that is legitimate, you can do yourself. You do not need a credit repair service. Many are unethical and will just take your money and run. Some will even charge you a monthly fee for ongoing credit repair.

With these tips you should be well-informed before making a decision about hiring any credit-repair service. You can easily get your business or personal annual credit report online free. Why not order and get your newest free credit report from Equifax, Experian or Trans Union, the 3 credit bureaus or reporting agencies, do a little research and fix your credit history yourself? It’s really not hard at all.



Karina