Your FICO Score


Your FICO Score

FICO measures credit-worthiness. Underwriters use three credit bureaus, Equifax, Experian, and Trans Union, to determine your score in the following ways:

1. Delinquencies lower scores, and scores drop when several credit accounts are opened in a short period.

2. A long credit history is better than a new one, and too few revolving accounts makes it harder to evaluate the ability to manage credit.

3. Consumers with “maxed out” cards may have trouble making payments. Too many revolving accounts indicate over-extension.

4. Tax liens, bankruptcies, and use of consumer credit agencies can all lower a FICO score.

5. Small credit card balances and no late payments show responsibility.


It is helpful to use a free credit reporting or monitoring system like CreditKarma which helps you keep track of your credit and notifies you of any activity which may affect your credit.

Good credit is important in obtaining financing for the purchase or refinancing of your home.  It also determines the interest rate lender's will offer you as a borrower.  Being proactive regarding your credit can literally save you money.