The Basis of Your FICO Score - Your Credit Report
The credit reporting agencies keep information on millions of people. Lenders making credit decisions buy credit reports on their applicants from the credit reporting agencies.
Your report details your credit history as it has been reported by lenders who have given you credit. It lists the types of credit, the length of time your accounts have been open, and how timely you've paid your bills. It tells how much credit you've used and whether you're applying for new credit. Lenders get a broad view of your history than other sources, such as a bank or individual lender's sources.
Credit scoring gives lenders to quickly, fairly and consistently get all this infomration, making the FICO system very useful.
How fast does my FICO score change? Your FICO score is based on a snapshot of information at a point in time. Your score probably won't change a lot from one month to the next. A bankruptcy or late payment can lower you score fast, but improving your score takes time. It's a good idea to check your score every 6 to 12 months. If you're actively trying to improve your score, check it more often.
Does my FICO score alone determine whether I get credit? No. Most lenders use a number of facts to make credit decisions. Lenders may look at information such as the amount of debt you can reasonably handle given your income, employment history, and your credit history. Base on their review of this infromation, as well as their specific underwriting policies, lenders may give credit to you although your FICO score is low, or decline your request for credit although your FICO score is high.
Read more about your Credit Score.
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