FICO® Scores Overview
WHAT IS A FICO®SCORE?
FICO® Scores are the most widely used credit scores. Each FICO® Score is a three-digit number calculated from the data on your credit reports at the three major consumer reporting agencies—Experian, TransUnion and Equifax. Your FICO® Scores predict how likely you are to pay back a credit obligation as agreed. Lenders use FICO® Scores to help them quickly, consistently, and objectively evaluate potential borrowers’ credit risk.
WHAT DOES THE SCORE REPRESENT?
A FICO® Score represents your credit risk (the likelihood that you will pay back your loan), which will influence a lender’s decision of how much credit is available for you and on what terms, such as the interest rate.
WHAT IS A “GOOD” FICO® SCORE?
The definition of a “good” credit score can depend on many factors, such as the type of loan being considered or internal guidelines set by individual lenders. In other words, that definition could vary from decision to decision.
I’M NOT SEEING A FICO® SCORE GENERATED. WHY?
The two main reasons why you would not see a FICO® Score generated are as follows:
- Your credit file does not meet these minimum requirements:
At least one account that has been open for six months or more
At least one account that has been reported to the consumer reporting agency within the past six months
No indication of deceased on the credit file (if you shared an account with a person reported as deceased, it is important to check your credit file to make sure you are not affected)
- You are not the primary owner of any given individual or joint membership at SF Fire Credit Union (the FICO® Score feature relies on Social Security Numbers listed as a primary owner on at least one membership)
Note: These minimum requirements vary slightly for FICO® Scores NG.
HOW OFTEN SHOULD I CHECK MY CREDIT REPORT?
Because FICO® Scores are based on your credit report, it is important to review your credit report for accuracy at least once per year, and before any big purchase, such as a house or a car. Every year, you are entitled to one free copy of your credit report from each of the three credit reporting agencies. A good source for this is www.annualcreditreport.com.
To learn even more about FICO® Scores, visit https://ficoscore.com/info/