ANSWERS: 1
  • Your FICO score is the most widely used credit score. Your credit score is vital to your ability to borrow money because it represents how likely you are to repay your debts based on your financial history. Your credit score takes the information in your credit report, plugs it into an algorithm and computes a number between 300 and 850, with higher numbers meaning you are more creditworthy.

    Order Your FICO Score

    To order your score, you need to create an account on the FICO website (see Resources). You will need your identifying information, including your address, date of birth and Social Security number. Once you have created an account, you need to choose which credit bureau or credit bureaus you want to use to order your report. Each credit bureau may have slightly different information in your credit file, so your FICO score will be slightly different on each report.

    Why Order Your Score?

    If you seek a major loan in the future, such as a home mortgage, refinance or auto loan, potential lenders will look at your credit score to determine whether to approve you for a loan. According to the FICO website, a change of just 50 points in your credit score could cost you $200 per month on your mortgage. You can also identify what parts of your credit can be improved or how soon negative information will be removed. Most negative information is removed after seven years, and inquiries are removed after two years.

    Appealing Errors

    When you get your score, you should verify that all of the information is correct. If you find errors, such as misreported line of credit limits, accounts that are not yours or other errors, you should write to both the credit bureau and the creditor to dispute your claim. Credit bureaus will investigate your claim within a month and, if found to be true, will remove the incorrect information from your credit report. If this occurs, you can request that an updated copy of your credit report be sent to anyone who receive your report in the last six months so they are aware of the change in your credit status.

    Source:

    MyFICO: How Your FICO Score is Calculated

    Federal Trade Commission: How to Dispute Credit Report Errors

    More Information:

    MyFICO: FICO Standard

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