The Origins of FICOFirst of all, let’s briefly discuss the origins of FICO (Fair Isaac Corporation). Back in 1956 many were introduced to credit scoring by two pioneers in the field: engineer Bill Fair and mathematician Earl Isaac. Over the years, the pair convinced lenders that mathematical formulas could do a better job of predicting whether an applicant would default than even the most experienced loan officers. Thus, the birth of your FICO score.Understand that there are now many different … [Read more...]
Credit Cards And Your Credit Score
Can Cancelling a Credit Card Affect My Credit Score?Cancelling a credit card will affect your credit score, especially if you have had that card for several years. 15% of your FICO credit score is based on how long you have had that line of credit. The older the better. Once you cancel that card, you will lose that long history you had with the card and your score will go down.How Do Credit Cards Affect My Credit Score?Credit cards affect your credit score with two factors:The balance on … [Read more...]
