FICO Scoring Model is the most accurate and reliable model to calculate your credit score. Let’s learn in-depth about this model and how it influences your credit score.

What is the FICO Score model?

This scoring model was created by the Fair Isaac Corporation (FICO) for lenders and borrowers to identify creditworthiness and assess the risk. FICO Scores are presented in the form of three-digit numbers that are based on information provided by your credit reports.

This scoring model has been in use since 1989 and there have been various revisions over the last three decades to determine an accurate credit score. Till now FICO score model has helped millions of people in determining their credit scores accurately.

If your FICO Score is good, you are likely to save thousands of dollars off of interest and fees. Mainly because lenders extend lower rates if they perceive you as less risk for them.

Factors Affecting Credit Score

FICO scores are calculated by using different aspects of credit data. This data is directly affected by your credit scores. Let’s take a look at the factors that have an impact on your credit score.

Payment History

Credit Utilization

Pro-tip for getting a better score; even if you intend to pay off the bill every month, do not spend close to your credit limit.

Credit History

Credit Use

The next factor that affects your credit score is the credit use which is worth 10% of your credit score. For keeping your credit score healthy, use several different cards and debts on your report. Do not apply for a big sum of credit in a short period, it poses a negative impact on your score.

fico score model and how it affects credit score

New Credit

Final Verdict – Fix your Credit score

Maintaining your credit score is really important and the FICO score model has successfully helped millions of people in doing so.

Planning to fix your credit score? Credit Repair Today can help you fix your credit score. Credit Repair Today is a licensed credit repair service offering credit restoration all across the United States.