Kitchens by Riland

FICA is a score awarding system used by Credit Bureaus to compile credit worthiness reports that help creditors, banks and other lenders to determine who deserves credit and who does not. Credit reports are the biggest factors in the calculation of these credit scores. Important factors that are put into consideration include loan repayment trends, late repayments, mortgage servicing habits, bill payments, tax remittances, debts status, type and number of accounts in operation as well as personal details like official names, employment and even physical address.

FICA credit scoring system awards scores putting most of the above factors into consideration to help lenders determine the high risk borrowers who may not repay borrowed money. By using the report compiled analysts use statistical techniques to compare consumers’ reports with other similar reports. The average credit score attained helps to determine your credit worthiness. It is always advisable to keep checking the status of your credit scores since these are the ones used to determine whether you qualify for credit or not.

A poor credit score straight means you are not fit to borrow while strong credit scores show you are good and obedient in meeting your financial obligations. Poor credit score can result from calculation mistakes on the side of the credit bureau which could easily lead to your loan application being rejected. It is therefore important to always check your credit score status before making a loan application to make sure you correct any possible errors before they land you to unnecessary trouble.

If you want to obtain your FICA credit score, you can request for your credit report from different credible credit bureaus. The scores may be a bit different resulting from their different ways of calculation. Compare all these reports and check for any errors. Also use the report to compare yourself against other peoples’ credit rating so that you can know exactly where you stand creditwise.

The methods used to develop the mode for calculating FICA credit score is a bit complex but most credit bureaus have a simpler way of developing the mode. They usually select a random working sample of consumers. This working sample is carefully analyzed statistically to determine features that define their credit worthiness. The indentified features then are assigned each a score depending on how weighty it is in determining repayment ability. This is an easy method although there are other methods that applied by different agencies.