Fico score developed by Fair Isaac corporation was founded in 1956 is the most common used credit score in the world .It is available in all reporting agencies ,Equifax,Experian,Transunion,the company earned a revenue of $800 million in the year 2005 with about 3000 employee working around. The company has a client base of more then 1400 financial service provider which includes 99 of top U.S banks and 49 of top 50 global bank, it also serves about 100 telecommunication provider's worldwide.
Fico score is used by the creditors or lenders to evaluate a borrower's creditworthiness based on the information provided on your credit score, Fico score can be calculated by credit bureau if only you have at least 1 account open for 6 month or more and 1 undisputed account reported to the bureau in past 6 month
Factor affecting credit score.
1. Affect of payment history on your credit score (35%):-it includes
- Your mode of payment,
- Number of payment you have missed and the time since you have missed.
- Do you have any negative report like bankruptcy, collections etc.
2. The amount you owe right now (30%)
- Total number and types of account
- There should be balance in ratio to total credit loan and original loan
3.the time frame of your credit history (15%)
- The time since you have opened different account
4. Any new credit (15%)
- Recently opened account and recent credit enquiries
- The way you have solved your past credit
5. The types of credit loan you have opted for (35%)