Finding Your Score Pt 1

Finding Your Score Pt 1

You would think that finding out what your credit score is would be easy.  In a way it is, but only because I’ve done my research and you won’t have to spend time surfing websites looking for the ever elusive credit number.  It would seem logical to have your credit score appear right on your credit report, but that’s just not the way it is.

At one time, your credit score was a big secret known only to financial companies and banks.  With the FACT Act, legislators decided that it was important for individuals to know not only what their personal credit scores are but how they are calculated and how to improve them.

The main company who calculates your credit score is the Fair Isaac Corporation commonly known as FICO.  They invented the concept of the FICO scores so they are the ones who are known as experts in the industry.  Before we go into finding your score, let’s look at a few facts about the FICO score.

  • FICO scores are your credit rating
  • They range from 300-850, higher is better
  • Most lenders base approval on them
  • Higher scores mean lower interest rates
  • FICO scores are calculated based on your rating in five general categories:
    • Payment history – 35%
    • Amounts owed – 25%
    • Length of credit history – 15%
    • New credit – 10%
    • Types of credit used – 10%
  • Fair Isaac Corporation is the inventor of the FICO score
  • They have the only website offering all of your FICO scores
  • The median FICO score in the U.S. is 723

Essentially, your credit score is simply a snapshot of your credit use — it’s the Cliffs Notes version of seven years of your borrowing history. In many lending situations, the lender bases its decision almost solely on your credit score. Consider your credit score the overall GPA of your borrowing history.


To be continued have the following offices:

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Houston, TX 77074

(281) 819.6006


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Austin TX 78701

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