A Fico score is a measure of consumers financial health and creditworthiness. It's the number ranging from 300 to 850 higher the better. The average Fico score is about 700 and pretty much every bank uses a Fico score when making lending decisions.
Fico creates the score by simply feeding numbers into its formula based on statistical evidence with no judgement or evaluation or emotion.The main factors that are taken in consideration are.
How much total in debtedness a consumer has.
How long they've had the debt."Newer relationships are riskier than things you've been paying over a long period of time
How much available credit is being used:"If you're close to the edge on your credit cards, that a danger signal."
Three key ways in which people can improve your score First pay your bills on time. Second don't get close to the edge.Don't use more credit than you really need. And third don't apply for new credit unless you absolutely have to.
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