Fair Isaac is a large company that provides financial analysis and decision-making services to UK financial companies that engage in large financial transactions. The Fair Isaac Corporation, or FICO, also does credit reporting and scores. Read this article to see what is the Fair Isaac credit rating scale.
Company information Headquartered in Minneapolis, Minnesota, USA, the company also has offices in the UK that provide credit rating for UK companies and customers. The company was started in 1956, and later went international, establishing offices in the United Kingdom. The company specialises in credit rating. The FICO score scale is a famous credit scale, and many banks use FICO to see if customers have poor credit rating.
FICO credit rating
Introduction The standard FICO credit score range uses a 300 to 850 point scale, with 300 to 500 being considered a very low credit score and 650 or higher being considered a great business credit score. FICO credit score The FICO credit score is a standard factor that is used by many UK banks and financial institutions to determine mortgage interest rates, credit card contract terms and car loan rates in the United Kingdom. FICO is well-known in the UK for producing predictable, non-biased and fair credit reports of individuals and businesses. How FICO calculates credit FICO uses a system of three credit report scores to average out your credit and evaluate your credit risk. FICO creates a credit score for the following three companies: Experian, TransUnion and Equifax. These companies represent the three major credit bureaus in the UK. Method Your score is calculated by this following method: 35% is your payment history; 30% is your amounts owed; 15% is your length of credit history; 10% is your new credit history; and 10% is the types of credit used.
Why get a credit score from FICO For example, if you want to take out a home loan in the UK, the lender will most certainly want to know the risk of lending you money. FICO has created a standard method for UK loan agencies to evaluate a person's or business' credit risk. Getting your credit score early can also help to give you the time to improve your credit score. Improving your credit score will help to save you money on loans in the future. How to get your credit score If you want to know about your credit status, you can check with FICO for free. You do not have to buy a credit report. You merely have to go online to FICO's website and fill out some information. Below is the web page where you can begin to check your credit score. Myfico.com