| |
|
Article Directory :: Finance & Investment Articles
Realtors and lenders are almost as bad as computer tech people at tossing out words and phrases you don't understand. The funny part is, sometimes even they don't know what those words really mean.
FICO is one of them. It's not really a word, but the initials that identify the score given to your credit rating. A few Realtors and a few lenders have some idea of how those scores are reached, but they probably can't tell you what the letters stand for.
Nothing. They're just the initials of the Fair Isaac Corporation. So now you're wondering what or who a Fair Isaac is, right?
Bill Fair was an engineer, and Earl Isaac a mathematician. In 1956 they formed a consulting and decision management service, and in 1981 devised the credit scoring system now known as FICO.
Under their system, each of a set of details about an individual's financial history is scored and given a weight, based on the past performance of others whose financial history is similar on that particular detail.
Among other things, the system gives a score to:
The length of time an individual has had and used credit
The Existence of bank accounts
The number of recent credit inquiries
Debt to income ratio
Debt to available credit ratio
Bill paying history
Lenders believe that by applying this compiled score, they know the statistical likelihood that a person will pay his or her debts. It must work, because FICO has become the standard, and this publicly traded company is a giant in the world of finance. With over 3,500 employees on 5 continents, FICO has an annual revenue of over $800 Million.
Contrary to what some might believe, FICO is not associated with the government. In addition to providing credit scoring, FICO still provides consulting and management services.
If your FICO score is over 720, you'll have an easy time getting a loan - or at least you would have before the current financial crisis. Right now that threshold may have been raised as many lenders have changed guidelines.
If your score is under 600 you'll be considered a poor risk, and in today's climate probably will not qualify for a mortgage loan. If you do, you'll be charged a higher rate of interest and will likely need a larger down payment. So it really does pay to take the steps to raise your credit rating as high as possible.
 EasyPublish™ this article - publishers click here
More articles by John Rasor
|
Free Report!
Ten Essential Secrets Of Article Marketing ... Grab Your Free
Copy Now:
Need Content?
Regular Top Quality Content for your Blog, Ezine or Website ...
Delivered Direct,
For Free!
Click For Details
Arts & Entertainment
Automotive
Business - General
Computers & Technology
Finance & Investment
Food & Drink
Health & Fitness
Home & Family
Internet Marketing/Online Business
Legal
Pets & Animals
Politics & Government
Reference & Education
Religion & Faith
Self-Improvement/Motivation
Social
Sports & Recreation
Travel & Leisure
Writing & Speaking
|
More finance articles: - Commercial Real Estate Ideas That Anybody Can Profit From (Stephen Hill)
Are you aware that there are practically hundreds of thousands, if not millions of properties throughout the Western world that have been foreclosed on in the last year alone? Many of these properties are commercial properties. This means that the real estate market is currently still very precarious, so you must be adequately informed as a customer before purchasing. - Student Loans: Collections Differ From Other Unsecured Loans (Holly Petherbridge)
When taking out a student loan, you are signing on to an unsecured debt which will stay with you until it is paid off. Student loans follow a different set of rules when it comes to collecting on defaulted loans. Understand your reponsibilities before you take out the loan. - The Many Factors That Go Into Your Car Insurance (Winston Takeda)
If you are puzzled about what goes into an insurance policy, then you aren't alone. In this article, you'll learn why. - Simple Tips To Get The Most Out Of Your Auto Insurance (Winston Takeda)
Believe it or not, there are plenty of ways to save money on your car insurance. In this article, you'll learn some methods that will really help. - What's Your $1 Million Business Worth? (Chia-Li Chien)
What are the three most important things in real estate investment? Location, location and location. But what makes a privately held business valuable? According to Rob Slee, founder of Midas Nation, it's timing, timing, timing. During my 2nd quarter 2010 SRI Business Retreat, Slee said you have to play the Transfer Timing Slot Game if you want to maximize your business's value for sale. Let's explore what Slee meant by that. - Know What Your Numbers Mean (Chia-Li Chien)
Have you ever faced a situation in your business and found yourself saying, "I know I need to do something, but I don't know what. Just tell me what to do and I will do it." Emotionally you feel panic, fear or even shame, especially when it comes to business finances. Potentially, that could trickle down to your personal finances, as well.
We Automatically Distribute Articles
To Thousands Of Publishers And Web Sites:
Submit Article
All content is viewed and used by you at your own risk and we do not warrant the accuracy or reliability of any of the information. The views expressed are those of the individual contributing authors and not necessarily those of this web site, or its owner, Takanomi Limited.
|
|
