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What does FICO model based on?

Lenders also consider your composite credit score, the numeric value that summarizes your entire credit history. While some may use their own credit scores, most creditors rely on a score based on the Fair Isaac Corp. model, called FICO®. This score is derived using the following information:

• Amount owed
• Available credit
• Payment history
• Recent credit
• Types and age of credit

Scores range from a scale of 300 to 850, the highest number possible. Wondering how Americans score nationwide? Here’s a look at how the numbers stack up:

Monitoring and Reviewing Your Credit Report

Knowing your credit history and understanding your score is extremely important. In fact, awareness is by far the easiest and best way to mitigate identity theft and fraud. In light of that fact, Federal law allows consumers to request a credit report every 12 months – for free. (By the way, anyone denied credit, insurance or turned down for employment based on their credit history is also entitled to a free report.) To request your report, visit AnnualCreditReport.com, the official and secure reporting site sponsored by the three major credit bureaus: Equifax®, Experian®, and TransUnion®.

Request your credit history from any or all of the agencies listed and select to have the information delivered online, over the phone, or by mail. Once you receive it, be sure to review it carefully and contact the reporting agency if you find anything wrong with the data. It’s important that your credit information is as accurate as possible so your credit score is not negatively impacted.

Remember, this is a free annual credit report, not a credit score. Scores are available through these and other credit companies, but usually for a fee. Be aware that different agencies may show different scores depending on the accuracy of your credit history – another good reason to monitor what creditors and lenders are saying about you.

For more information about scores or how to receive yours, contact:

Repairing Credit Scores

If you’re not satisfied with your credit score, improve it! Creating a positive history and score may take time and patience, but it’s definitely worth the effort. High-scoring consumers receive the lowest rate credit cards and loans for cars and mortgages and save the most money, hands down. Here are some important tips to achieve and maintain a stellar standing:

• Pay all your bills on time, every time
• If you do miss payments, get and stay current
• Pay off debt or lower your balances
• Don’t move outstanding balances around
• Keep credit card usage under 30% of your available credit
• Don't close inactive credit card accounts
• Open new accounts only as needed and not to increase your available credit