FICO Score Rating: What You Should Know About Your LenderMost financial institutions and companies use the FICO score rating to discover a person's creditworthiness. However, you should note that this rating alone would not decide why a lender or other creditor would grant or deny your application for a loan. In essence it is just one part of the decision making process that lenders use to find out whether you are a high or low risk when it comes to lending money loan. They want to know if you have the ability and willingness to repay the money they lend you. The FICO credit score rating is not a subjective method used by lenders to qualify you for a loan or other credit. The Fair Isaac Company designed it to consider relevant information taken from your credit history. To get your FICO score the formula includes, among other factors, your total debt and the payments needed each month. It also looks at your current income to see how much of it you have left after you pay your monthly expenses like telephone, electricity, and water, rent, food, and car payments, for example. Lender don't often take FICO scores for granted, so they look at other factors. While your income is put through the washer in the FICO rating, other factors also play an important role. The lender interpreting your rating would ask about your employment. That is, they want to know how long you have worked for your current employer. In addition, your previous employment history would also come under scrutiny, and your credit history while you were working for a particular company. The FICO rating reflects lenders doubt about people who move from one job to the next in a short time. They often associate this behavior to an unstable, unreliable person. If you fit this persona, you would have to assure the lender that you could manage your debt and pay regularly. Passing the FICO test is a good sign the lender will give you the money you want. But lenders are human, and humans can decide subjectively. Sometimes we have an intuition about a person or situation and act so. Sometimes we are right and at others we are wrong. And while a computer score may save us much analysis, we still have to stand up and tell the customer "no" at times. So it is important you remember this when applying for a loan or other credit - the lender is a real person. But the main reason financial institutions and companies will look at a person's FICO score rating is to judge just how well they can manage any debt that they already have. If you and your rating can convince them that you pay all your bills on time, you are well on your way to getting your loan application approved. Give it a good try! Fico Score >> Privacy Policy >> Disclaimer >> Terms Of Use >> About Us >> Contact Us |