FICO Credit Score Report - By: robert ludrige

FICO and the FICO Credit Score is almost the only term used anymore when it comes to credit scores and anything related to your financial numbers. The company, Fair Isaac Co, was founded in 1956 by Bill Fair and Earl Isaac to determine and predict risk for financial institutions. They thought that based on past performance, a prediction could be made in future transactions. Sometimes this works, but many times it does not.

If you believe that your credit score is a reflection of you, perhaps of the type of person you are, you'd better think again.

Millions of Americans have low credit scores and millions use subprime credit cards. Their bad credit, usually considered to be below 600, is only an indication of the risk they pose to lenders. This risk is based on past use and performance of their financial life.

Credit scores do not take into consideration the type of person you are. Likewise, it makes no difference what your gender may be. Height, weight, income and marital status make no difference when calculating your FICO Credit Score.

What matters is how much credit you have, the type of credit you have and how you pay your bills. There are other factors, but these three categories are the main criteria for determining what your score will be.

What type of credit do you have?

Department stores, and auto loans plus a mortgage are all acceptable types of credit. The problem lenders are the high risk types, like Payday loans. American General and other high interest rate lenders will cause your scores to go down too. Stay away from jewelry store financing. Furniture is another type of financing that will cause your credit scores to go down.

How do you pay your bills?

Believe it or not there are people who will wait till the last minute to pay their credit card bills. They do this with the attitude that the lender is going to have to wait till the bill is actually due. I've even heard it muttered that they're not getting my money sooner than the due date. If you are one of these people, I have bad news for you.

Credit card debt is calculated with interest due on the remaining balance on a daily basis. Everyday you owe money you are paying interest. Also, your balance is changing-going up, so why wait to pay your bills? If you have the money, pay early. And besides, it is not your money. You borrowed it. Remember?

About the Author

Do you understand your FICO credit score? Are you looking for lower interest loans. Why pay an outside company when you can clean up your own credit reports? With online software, like AVAIL, whic has just become available to consumers, you do not need a credit repair service to write a series of dispute letters for you. In fact, AVAIL writes a dispute letter automatically. All you do is print and sign. Don't be misled that credit repair is a huge mystery because it isn't. For a very small fee, you can be online in a secure server. You will be able to see what lenders see and you will be able to make fast and important decisions about your credit reports.

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