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FICO Scores
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FICO stands for Fair Isaac Corporation. FICO scoring is the
best-known credit scoring mathematical model used in the United
States. The FICO score is primarily used in the mortgage industry,
although some other lenders also use the FICO scores. However
different lenders look at significantly different factors, i.e. home
mortgage lenders score "no mortgage lates" as really important,
while tenant-screeners may score installment/automobile lates as not
important.
When a lender receives your FICO score they'll also receive as many
as four "score reason codes." These codes indicate the four most
significant, detracting factors that caused the credit score to be
lower. Loan-seekers should examine these reason codes for the
following reasons:
- Do the reason codes make sense? If not they could be key
to finding an error on your credit report.
- The reason codes can be used to clarify where improvements to
your credit score can be made.
This Credit Score
Disclosure form lists all the FICO codes in detail.
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