How to Determine FICO

Invented by the Fair Isaac Corporation, FICO is a numerical snapshot of a consumer's credit worthiness. Based on payment history and debt-to-credit limit ratio, a credit score will determine how good a consumer is at paying his bills on time. If you want to determine your FICO score, read on to learn what a FICO score can mean for you and your family as well as how you can increase your FICO score.

Instructions

1

Understand what a FICO credit score is and why it matters to you and your family. The three nationwide credit bureaus, Equifax, Experian and TransUnion each have a file that details how good you are at paying your bills and how much debt you owe. Using a sophisticated mathematical formula, each bureau designates a credit score based on the credit information that it has received from your creditors. That score is known as your credit score and is used to provide lenders with a snapshot ranking of your credit worthiness. This information will determine credit card, home and auto interest rates you are assigned as a consumer.

2

Request your credit score at myfico.com, annualcreditreport.com or at any of the three nationwide credit bureaus for a nominal fee. That fee can range from $5.95 to $15.95 dollars. Because your score may vary from bureau to bureau, it is best to request your credit score from each bureau.

3

Understand how FICO is scored. FICO scores range from 300 to 850; the higher the score the better the standing. Generally, a score of over 750 will qualify you for lower interest rates and mortgage loans. The FICO credit ranking is as follows: 330 to 619 (poor credit); 620 to 659 (low to average credit); 660 to 720 (average credit); 721 750 (good credit); 751+ (excellent credit).

4

Understand what factors contribute to your FICO score. The factors include payment history, debt-to-credit limit ratio, length of credit history, type of credit and inquiries made for new credit.

5

Get on the road to a higher FICO score. Add your total unpaid balance (debt) and divide by the total amount available on the credit account (credit limit). That number will determine if you have a high or low debt-to-credit limit ratio. To raise your FICO score, you need to lower your debt-to-credit limit ratio. To do this, start to pay beyond the monthly minimum payment, eliminate or reduce high interest credit cards, and pay each creditor on time.