How Your Credit Score Is Derived

Developed in 1956, a Fair Isaac Corporation Score (commonly called the FICO Score) is a three digit number ranging from 300-850 and is calculated according to the following risk factors:

Payment History (35% of score)

Payment information on many types of accounts
Public record and collection items
Details on late or missed payments – specifically:
- how late they were
- how much was owed
- how recently they occurred
- how many there are

Amounts Owed (30% of score)

Amount owed on all accounts
Amount owed on different types of accounts
Whether you are showing a balance on certain types of accounts
How much of the total credit line is being used
How much of installment loan accounts is still owed

Length of Credit History (15% of score)

How long your credit accounts have been established, in general
How long specific credit accounts have been established
How long it has been since you used certain accounts

New Credit & Inquiries (10% of score)

What kinds of credit accounts you have and how many of each
Total number of accounts you have

Types of Credit (10% of score)

How many new accounts you have
How long it has been since you opened a new account
How many recent requests for credit you have made

What It Means

Once the borrower’s score is derived, most lenders use a standard ‘grading’ system to categorize the results. While some lenders develop their own systems for classification of scores, below is a general guide of score interpretation. Used as a general reference, this can help you interpret the credit score you’ve been given based on a grading system typically used in schools:

CREDIT SCORE
670 and above
650
620
580
550
520 or below

GRADE
A+ to A
A-
B+ to B-
C+ to C-
D+ to D-
E

Fair Isaac Resolution Resources Helpline (800) 777-2066

WHY GRAND AVENUE REALTY & LENDING

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When dealing with your home financing, we are not only working with one of your largest personal financial investments; we also are handling one of your biggest dreams. Since we work with matters so close to the heart, we serve you from ours.

New Century Realty & Lending can meet you where you are and help you where you are going. Let us provide you a mortgage without obstacles.