• FICO SCORES -Those mysterious three digit numbers that determine if you will get a loan or not, and at what interest rate.Today credit scores are the most vital numbers but are least understood.
• FICO SCORES were developed by Fair Isaac company based in Marin County California and are mathematical models of a borrower's risk profile .
• Each of the three major credit bureaus are licensed by Fair Isaac company to run individual credit data through its proprietary statistical models.They use their own version of names for e.g.
• Beacon uses Equifax,Empirica is Trans Union,and Experian is Fair Isaac model.
• FICO SCORES range from 400 to 800 and are graded by mortgage lenders as given below.
  

Factors that we know that affect your credit scores are given below.

• Derogatory Information: Most recent two year information is weighted higher than information a few years older like late payments,charge-off's, bankruptcy, repossession etc.
• Outstanding accounts: The larger the total outstanding debt the higher the risk and lower the scores. Reducing account balances reduces these scores.
• Credit history legend: The longer the credit history is established and the number of accounts are established the better the scores, versus a new credit profile and recently opened accounts.
• Use of credit: The lesser the use of credit the better the scores for example fewer inquiries keep the Fico scores low since frequent credit usage is considered risky in Fair Isaac models.