FICO consumer credit score - perfect credit score and national average credit score

Your FICO score is very important in the management of your financial profile. The FICO score is utilized by the credit institutions in determining your overall credit worthiness. This FICA score is based on what is in your credit report at present. As reported by the Fair Isaac Corporation, a US national average score is 723.

Many people who decide to check their credit score for the first time are not sure what to think of all the numbers.

The essential key ingredient is to figure out how the FICO credit score is calculated. Once you grasp the idea of this principle you will be in a better position to repair credit or maintain good credit.

In order to figure out your credit score rating, you will need to be apprised of how the credit score rating scale is set up.

While each creditor has its own evaluation criteria, in general people with FICO scores above 720 is considered as a good credit score. However, there is no firm standardization determining what the good score is.

Any score below 675 may have some difficulty in getting better interest rates and/or better terms.

If your credit score falls under 620, it may be very difficult to even get credit.

In general, a score of 500 is the lowest FICO score a consumer may receive.

Your FICO score is primarily based on payment history, amount of debt you have in relation to available credit, length of credit history, types of credit, and new inquiries.:

1) 35% of the FICO score is composed of your historic ability to repay a loan. In regard to this point, any time you are thirty days late in repaying a loan, the late payment may be reported on a negative basis to the credit reporting agencies and thus adversely affect your FICO score.

2) Thirty percent of your FICO socre is based on your overall debt: This is the ratio of your balance of debt relative to credit available.
3) Fifteen percent of the FICO score is based on the total time you have been a borrower. For example, the basis starts when you initiated your first loan to the present day.

4) Ten percent of your FICO socre is based on the various forms of credit you may use. Certain kinds of credit carry more weight than other forms.

5) Lastly, New credit accounts for 10% of your FICO score.

Factors which may highly influence your FICO score include the following:

- tax liens
- excessive loans
- new inquiries


The three major credit reporting agencies are Experian, Equifax, and TransUnion. Credit bureaus, in some cases, use various sources of information; therefore it is advised for you to check your credit report from each credit bureau in order to get the best overall picture of your credit profile. You may get a copy of your report via the Internet, calling a toll free number or sending a Request form.

The credit report will not include your FICO score; but, you may purchase your FICO credit score upon evaluating the report.

For more information on credit score, visit ScoreTruth.com