FICO was founded in 1956 as Fair, Isaac and Company by engineer William Fair and mathematician Earl Isaac. The company debuted its first general-purpose FICO score in 1989 and by 2005, they sold their 10 Millionth Score! Watch this short video on what the score is and why it matters.
Every day, thousands of U.S. lenders use FICO Scores to make more well-informed credit-granting decisions. But what does that mean for you? And why is it important to understand how lenders use them?
This video takes a look at what a FICO Score is and why it matters to consumers and lenders alike. Watch to learn how FICO Scores streamline the lending process, making it faster and fairer for you.
The Fastest Way To Build Or Increase Your FICO Score
Now you can see the importance of having a high FICO score! Now the next question is “How Do I Build My Score Or Increase It Higher?” The answer to that question is going to be different for some consumers as everyone has a different credit score and report. For those of you who are just starting out, I recommend getting a Credit Card. A Credit Card is the easiest way to build your credit, but you must use it properly. To understand how credit cards work, click here.
Some of you have already built your credit score but you are looking for the fastest way to increase that score. The #1 problem most consumers have is to much utilization. Utilization is calculated by your credit card balance/your credit card limit. A good utilization to have is 30% or less. For example, if your credit card has a limit of $1000 and a balance of $300, then you are in an okay position. If your balance is $600, then your score will more than likely decrease since the utilization is so high. To see the best results in your credit score and using your credit card, you must keep your utilization under 6%. Even though is close to not even using your credit card, this will improve your score like you wouldn’t believe!