Fico scores are the pivoting criteria in order for a lender or creditor to extend you some kind of loan or line of credit. No one really knows the mathematical model to calculate this three digit number.

We do know that the following factors affect your fico scores:

• Outstanding accounts : The more the debt you have also known as high income debt ratio, the higher the risk you are and this lowers you Fico score.

• Derogatory Information : The most recent two years of credit history are weighted higher than past history.

• Credit History : The longer the credit history or account is established the better. Your employment on your report also is a plus, the longer you have been working at an employer the better. Beware of open credit, open credit are those accounts that are open with no debt and have not been used for over one year. This may count against you when applying for any credit. The lender or creditor may say that you can theoretically max out these accounts and higher you income to debt ratio.

• Use of credit : The fewer the credit accounts open the better. Additionally, the less credit inquiries the better the Fico scores. If there are many credit inquiries or credit check the lender may think you are trying to open numerous accounts.

	Experian Credit Information Service PO Box 2002 Allen, TX 75013-2002 Click here for the Experian Home Page
	Equifax Credit Information Services PO Box 740241 Atlanta, GA 30374-0241 Click here for the Equifax Home Page
	TransUnion LLC PO Box 1000 Chester, PA 19022-1000 Click here for the TransUnion Home Page