FICO. Why is it so important? Is it possible to trade your 1st born for it? We'll get to that later.
First off, do you feel stripped naked when someone asks for your SSN to run your credit? Do you feel as though you've been violated? You should be if your FICO is low....or maybe it just feels like it.
Owning your own home is hands down the most desired dream for most individuals. You've found the right house and then guess what? Whamm!! A taste of reality hits. Boy, does it taste bitter and sour. When you apply for a mortgage loan, the lender will pull a credit report and look at whether you've made your payments on time on a consistent basis. What you may not expect is that the lender seems to be more interested in your FICO score....now more than ever before.
What does FICO stand for? No, it does not stand for Feeling It Coming Out. It stands for Fair Isaac Corporation, which is the company that is used by the national credit bureaus to compute the credit scores. Whenever your credit report is pulled, your report is run through a computer program with a built-in scorecard. The tabulation of your score is made up of a point system where you get credited for bill management behavior that is considered positive and you get dinged for behavior that is considered negative.
For example, here is a list of some of the questions that it will consider:
• How long have you had your credit