FICO Scores, Credit Repair and Home Loans - The Real Truth
By Keith Gill

The Fair Isaac and Co. is the renowned developer of what in financial circles is known as the FICO score. A FICO score is a procedure or a methodology that gives a fair idea of whether users of credit will pay their outstanding bills. It was in the 1950’s that Fair Isaac, began working on a scoring method that would make the lives of lenders much easier. Over a period of time, this has indeed become one of the most reliable methods by which credit can be evaluated. The credit history of a borrower is generally lengthy and very complicated. What a FICO score aims to do is shorten it, into a solitary number.

The process of calculation of the FICO score is complex as it tries to integrate many models of evaluation. In the process of evaluation, all information about the finances and credit history of the borrower are given specific points. This is done by using various models and mathematical tables, and making a study of millions of cases involving the use of credit, by various people. As can be seen, FICO scores predict the future and this is why different sources of data are used to come up with effective credit forecast.

Some of the prominent factors that are taken into consideration by FICO scores are the employment history of an individual, the number of late payments, the time he/she has spent at the present residence, negative credit information such as bankruptcy.

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