Thursday, October 29, 2009


Your credit score represent your credit worthiness:How you will pay your bills and pay them on time.The Minneapolis-based Fair Isaac Corporation better known as FICO gives a detailed report on how you borrow and repay you debts,into a single three digits.
When you apply for credit,lenders want to know what risk they had taken by loaning money to you.
You have to know your Fico score just as you know your social security number,an access code,a password,because your credit score is your magic three numbers that banks use to determine whether you qualify for credit,and if so,how much interest they will charge you.
The Fico scale ranges from a low 300 to a high 850.The higher your score ,the more likely you will qualify for the low interest rates.You have three FICO scores one from each of the three credit bureaus:
  1. Experian
  2. TransUnion
  3. Equifax

Your credit score is calculated based on:

  1. Your payment history (35 %).
  2. Total debt (30%).
  3. Duration of credit (15)
  4. New credit taken (10%)
  5. Type of credit taken (10%)

This quiz was put together by the Reader's Digest and Fico.Try it too.

1-How long ago have you open your first credit account?

-Less than six months ago (1 point)

-Between six Months to five years (5 points)

-Five years to 20 (8 points)

-More than 20 years ago (10 points)

2-How many loans and credit card have applied for in the past year?

-Zero to two (10 points)

-Three to six (5 points)

-Seven or more (1 point)

3-What is total credit balance?

-No credit card (5 points)

-0 to 999 dollars (10 points)

-1,000 to 4,999 dollars (6 points)

-5,000 to 19,999 dollars( 3 points)

-20,000 plus (1 point)

4-When did you last miss a loan or a credit card payment?

-Never missed (10 point)

-Within the past year (1 point)

-One to four years ago (3 points)

-More than four years ago (5 points)

5-In the past 10 years ,have you passed through a bankruptcy,tax lien,foreclosure,repossession,or been referred to a collection agency?

-Yes( 1 point)

-No 10(points)

Check your result:

-35 to 50 points= Good score

-20 to 34 = Fair score

-5 to 19= Poor score

you can learn more at


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