What is a Credit Score

Fair Isaac and Company (FICO), is a data analytics company based in Boseman, Montana. It is focused on credit scoring services. It was founded by Bill Fair and Earl Isaac in 1956. Its FICO score, a measure of consumer credit risk has become a fixture of consumer lending in the United States. 

A FICO score is a number used to determine someone's creditworthiness. Financial Institutions and Lenders use this as a guide to determine how much credit they can lend to a borrower and at what Interest rate. FICO score can range between 300 and 850, the higher the number, the better and you are deemed to be a better credit risk. 

For a Home Mortgage, the commonly used FICO scores are 

(1) FICO Score 2, or Experian Fair Isaac Model v2

(2) Fico Score 5, or Equifax Beacon 5

(3) FICO Score 4, or Transunion FICO Risk Score 04

It is always a good idea to review your credit report before you apply for a home loan to check for any incorrect information. Lenders look at your credit score as part of evaluating your loan application before a loan offer is made. 

Under the Fair Credit Reporting Act, you are entitled to one free copy of your credit report annually. One way of obtaining your free credit report is by accessing the website www.AnnualCreditReport.com