Fair, Isaac and Co. is the San Rafael, California Company founded in 1956
by Bill Fair and Earl Isaac. They pioneered the field of credit scoring for financial companies.
They have expanded their enterprise to cover decision systems, analytics and consulting.
Every credit agency, and most lenders, calculate your credit score using software from
FICO® (Beacon) or in house software based on the FICO® rating system.
Home Mortgages Bad credit in auto financing can really hurt, but it’s nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $50,000 and $130,000 or more in interest alone if you are buying the home with bad credit.
15 Percent is Length of Credit History: As consumer’s credit history ages, assuming they pay their bills, it can have a positive impact on their FICO® score. In general, a longer credit history will increase your credit score.
10 Percent is Types of Credit Used: Consideration is taken on the mix of credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans. Consumers can benefit by having a history of managing different types of credit.
10 Percent is New Credit: Multiple credit inquiries for a consumer seeking to open new credit, such as credit cards, retail store accounts, and personal loans, can hurt an individual’s score. Applying for lots of new credit in a short period of time is also viewed as risky and can cause a drop in an individual’s score. However, individuals shopping for a mortgage or auto loan over a short period will likely not experience a decrease in their scores as a result of these types of inquiries.
Now that you know how your score is calculated, you can begin making changes to your current financial planning. The best things you can do are simple: