Credit score info, what does it mean? Sooner or later, just about every consumer asks that question. A credit score is the key to credit opportunities and the higher your score, the more exalted the doors you will be able to open and the greater will be the benefits you will receive.
According to Fair Isaac Corporation ("FIC"), the creator of FICO scores, which are used by the three credit reporting agencies and most creditors, your credit score says five key things about you. Writing in its publication, "Understanding Your FICO Score," FIC states "These key factors are the top reasons why your FICO score was not higher … these factors can help the lender tell you why your score was higher."
The factors are: payment history, amounts owed, length of credit history, new credit, and types of credit in use. Payment history means how well do you pay your bills: do you pay them on time, are there late payments, missed payments, or collections. Amounts owed considers your total indebtedness as well as the amount owed on certain types of accounts and how many accounts you have. Length of credit history looks at how long you have had credit established, how long it has been since you used existing credit accounts and related data. New credit explores how many counts you have, whether there has been a lot of new accounts recently, credit inquiries, and the like. Finally, types of credit in use analyzes whether your credit represents a "healthy mix" the types of credit you have and how many accounts you have of each type. The factors considers other data not addressed here but you have a general idea of what the factors say about you and your creditworthiness.
Credit score info – what does it mean? It means whether or not you are an acceptable credit risk.