| Fair Isaac credit scores is the most
accepted credit score among lenders. They give lenders an objective
measurement of your credit risk. Fair Isaac credit scores offer
an explanation of the positive and negative factors affecting your
credit score and access to a credit score simulator.
Fair Isaac credit scores - especially FICO scores, the most widely
used credit bureau scores - have made big improvements in the credit
process. Because of credit scores:
- Loans can be processed faster.
Fair Isaac scores can be delivered almost instantly, helping lenders
speed up loan approvals. Today many credit decisions can be made
within minutes. Even a mortgage application can be approved in
hours instead of weeks for borrowers who score above a lender's
"score cutoff". Fair Isaac credit scoring also allows
retail stores, Internet sites and other lenders to make "instant
credit" decisions.
- Credit decisions are fairer.
Using Fair Isaac credit scoring, lenders can focus only on the
facts related to credit risk, rather than their personal feelings.
Credit Factors like your gender, race, religion, nationality and
marital status are not considered by Fair Issac credit scoring.
- Credit Inaccuracies are less important.
If you have had poor credit performance in the past, credit scoring
doesn't let that haunt you forever. Past credit problems fade
as time passes and as recent good payment patterns show up on
your credit report. Unlike so-called "knock out rules"
that turn down borrowers based solely on a past problem in their
file, Fair Isaac credit scoring weighs all of the credit-related
information, both good and bad, in your credit report.
- More credit is available.
Lenders who use credit scoring can approve more loans, because
credit scoring gives them more precise information on which to
base credit decisions. It allows lenders to identify individuals
who are likely to perform well in the future, even though their
credit report shows past problems. Even people whose credit scores
are lower than a lender's cutoff for "automatic approval"
benefit from scoring. Many lenders offer a choice of credit products
geared to different credit risk levels. Most have their own separate
guidelines, so if you are turned down by one lender, another may
approve your loan. The use of Fair Isaac credit scores gives lenders
the confidence to offer credit to more people, since they have
a better understanding of the risk they are taking on.
- Credit rates are lower overall.
With more credit available, the cost of credit for borrowers decreases.
Automated credit processes, including Fair Isaac credit scoring,
make the credit granting process more efficient and less costly
for lenders, who in turn have passed savings on to their customers.
And by controlling credit losses using scoring, lenders can make
rates lower overall. Mortgage rates are lower in the United States
than in Europe, for example, in part because of the information
- including credit scores - available to lenders here. Knowing
and improving your Fair Isaac score can also lead to more favorable
interest rates.
Order a FICO Credit Score
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