Beverly Hills Real Estate

How Your Credit Score Is Derived
How Your Credit Score Is Derived

Developed in 1956, a Fair Isaac Corporation Score (commonly called the FICO Score) is a three digit number ranging from 300-850 and is calculated according to the following risk factors:

Payment History (35% of score)
  • Payment information on many types of accounts
  • Public record and collection items
  • Details on late or missed payments – specifically:
    • how late they were
    • how much was owed
    • how recently they occurred
    • how many there are
Amounts Owed (30% of score)
  • Amount owed on all accounts
  • Amount owed on different types of accounts
  • Whether you are showing a balance on certain types of accounts
  • How much of the total credit line is being used
  • How much of installment loan accounts is still owed
Length of Credit History (15% of score)
  • How long your credit accounts have been established, in general
  • How long specific credit accounts have been established
  • How long it has been since you used certain accounts
New Credit & Inquiries (10% of score)
  • What kinds of credit accounts you have and how many of each
  • Total number of accounts you have
Types of Credit (10% of score)
  • How many new accounts you have
  • How long it has been since you opened a new account
  • How many recent requests for credit you have made
What It Means

Once the borrower’s score is derived, most lenders use a standard ‘grading’ system to categorize the results. While some lenders develop their own systems for classification of scores, below is a general guide of score interpretation. Used as a general reference, this can help you interpret the credit score you’ve been given based on a grading system typically used in schools:

CREDIT SCORE 
670 and above 
650 
620 
580 
550 
520 or below 
GRADE 
A+ to A 
A- 
B+ to B- 
C+ to C- 
D+ to D- 
E

 

Fair Isaac Resolution Resources Helpline (800) 777-2066


WHY GRAND AVENUE REALTY & LENDING

You need mortgage professionals you can trust. You need a company that values honesty and integrity throughout the entire organization. You need mortgage planning specialists who give you their best consistently. You need to find strength, stability and opportunity—especially now. You need New Century Realty & Lending!

When dealing with your home financing, we are not only working with one of your largest personal financial investments; we also are handling one of your biggest dreams. Since we work with matters so close to the heart, we serve you from ours.

New Century Realty & Lending can meet you where you are and help you where you are going. Let us provide you a mortgage without obstacles.

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