| The nation’s credit bureaus assign consumers a so-called FICO score — named for Fair, Isaac & Co., which developed the software used to calculate the score. These scores, designed to indicate your creditworthiness, are provided to lenders when you apply for a loan.
About two dozen variables go into figuring the score, but there are five basic categories: your past record in repaying your debts, the amounts you owe, the length of your credit history, the amount of new credit you have been taking on and the types of credit you use.
The scores range from 300 to 850 — the higher the better.
The same score can mean different things to different lenders, depending on their standards and market conditions. However, there are some rough guidelines:
• If your score is in the 300-to-600 range, you will find it tough or impossible to get new credit. If you do get credit, you probably will have to pay relatively high interest.
• If your score is in the 600-to-800 range, you rank with the great majority of U.S. consumers.
• At 675, you probably won’t have any difficulty securing a standard credit card. At 750, you can hope to get a platinum card.
• If you score above 800, the lender might even ask you for a loan. |
