Rockland County Real Estate

When you apply for a loan, the interest rate that the lender charges you
on that loan is determined by something known as a fico score.

Per Suze Orman: Every single person alive (once they have a credit card or apply for any type of credit) has a credit report AND a FICO score.  You should be aware that there are three credit reporting bureaus. They are:

1. EQUIFAX
2. EXPERIAN
3. TRANSUNION
   
   Each one of these bueaus has a FICO score attached to it. Therefore you can have as many as 3 FICO scores.

EVERY MOVE YOU MAKE when you pay a creditor, gets reported to one of this bureaus. It's up to the creditor which bureau they report to. Therefore, its possible that your credit card payment history would be on one bureau, your car loan on another and your mortgage on still another (or any combination of the above).

Remember: (excerpted from: myFico.com) Lenders use a number of facts to make credit decisions, including your FICO® score. Lenders look at information such as the amount of debt you can reasonably handle given your income, your employment history, and your credit history. Based on their perception of this information, as well as their specific underwriting policies, lenders may extend credit to you although your score is low, or decline your request for credit although your score is high.

Here's what you need to know: Since rate follows risk, if your FICO score is high the interest rate charged on the loan is lower - if you FICO score is low the interest rate the lender charges you is higher.

WHAT IS THE DIFFERENCE, therefore, BETWEEN A FICO SCORE AND A CREDIT SCORE? Fico scores are created by FICo and Credit Scores are created by the credit bureaus.  The credit reporting bureaus have to send the credit scores to FICO so FICO can look at the reports to give you a score.   Understand that because there are three different credit reporting bureaus, you can have three different FICO scores. 

FICO HISTORY:  Years ago the people whe were creating these fico scores (from information compiled from the credit bureaus) decided to get into this business themselves and create a credit score based on the information they already have on you. So they did, and "FICO" (which stands for Fair Isaac Corporation) for formed.  (by the way ... the HIGHEST the score can go is 850)  

HERE'S THE PROBLEM: 90% OF major lenders today only look at a FICO scoreS in determining the intereSt rate that you will be charged.

HERE'S THE SOLUTION: Now that you know you can have as many as 3 FICO scores, you should contact the creditor you want a loan from and ask them which fico scores they check and that's the one you should purchase and see how you are doing.

  WHAT IS A FICO SCORE! (3:18 length) 

  FICO Planner Kit: Fabulous Info (6.41 length)