How to Interpret the Poor & Good Chart for a FICO Credit Score

Fair Issac Corporation, commonly known as FICO, is a publicly traded company that manages and monitors the credit scores of North Americans. FICO scores are used by a variety of financial companies to judge the credit-worthiness of an individual. Due to their importance when applying for loans and mortgages, it is important to know how to interpret the rating chart on a FICO credit report to learn how financial institutions may view your credit risks.

Instructions

1

Order a free credit score report through myFICO, the consumer division of the FICO company. New customers may receive two free credit scores and credit reports the first time they join myFICO. After ordering your score, the company mails you a physical pamphlet detailing your personal credit history. It may take up to 10 business days to receive your package.

2

Find your FICO credit score, printed on the first page of your credit score package. Remember this score, or write it down on another piece of paper.

3

Locate the "Poor, Fair, Good and Excellent" chart on the credit score report. This charge is typically found on Page 3 or Page 4 in the FICO credit score package.

4

Compare your score with the score chart. Individuals with a credit score below 620 are deemed to be of poor standing. Those with a credit score above 780 are seen as having excellent credit. The rest are broken down as fair, good and very good. Your credit standing is judged by where your personal score falls within the chart. The closer you are to the poor end of the chart, the harder it will be to obtain financing or find a low-interest loan.

5

Look below the horizontal credit chart for a pie chart that breaks down how various factors influence your standing. For example, the purple-colored "Amounts Owed" piece of the pie chart constitutes 30 percent of your credit score. This involves such matters as your current debt compared to your credit limit. To increase your credit score, change personal lifestyle and spending habits that fall into each of these categories.