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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About Chris & Karen Highland
We’re Chris and Karen Highland, The Highland Real Estate Group. We’ve lived in the Frederick area for over 18 years and are raising our 4 children here. We’ve seen many communities built where there once was farmland. We love the “small-city yet large-town” atmosphere of Frederick, the quality of life, and the affordability we’ve found here.
I've been selling real estate in Central Maryland for almost 16 years. Karen has been helping me over the years in different capacities, as an assistant, then as a buyer’s agent. For a year, I managed an office and Karen took over the bulk of the business. It was a great experience for both of us. I managed 90+ agents and saw more contracts come over my desk than the previous 14 years combined!
Now I'm back, running the business and Karen is running the office, and blogging and marketing. With each new year comes a different kind of market and new challenges.
In this present market, we face many challenges with mortgage problems, distressed properties and the credit crunch. I've gotten a nationally recognized certification , CDPE, Certified Distressed Properties Expert, to equip me to help homeowners in distress. I'll be blogging about a lot of these issues and about all kinds of real estate topics.
Karen and I always have something to say! Join us in our online, ongoing conversation about Frederick Real Estate