FICO scores are numeric values assigned to consumers like yourself
by credit reporting agencies. They are rankings based on your
credit history and are divulged to requesting lenders who are
deciding to bestow you with credit or not. The score is
designed to reflect your likelihood of paying back a loan by the
lender's terms of agreement. Other factors considered when
issuing home equity loans and determining home equity loan rates:
your monthly/annual wages.
current bills/payments you are making.
your homes value (determined by appraisal)
What is the Best FICO Score?
The highest FICO placing goes to those who have a score above 620.
This is called the "A" Group. Factors can vary - Yet, more
often than not, those consumers in the "A" Group and with the
highest rankings above 620 have the most propitious chances of
receiving the home equity loan they desire.
Although it is ideal to have a FICO score of at least 620, it is
still likely for borrowers to qualify for home equity loans who have
lower FICO scores. Obviously, the home equity loan rates will
not be as advantageous as they would be with a FICO score of 620 or
What Determines My FICO
It would help to know this question by knowing Who
determines your FICO score. For many years, Fair Isaac &
Company has been the firm responsible for gathering and analyzing
credit histories for great masses of borrowers.
It is Fair Isaac & Company's legal right to not divulge the credit analyzing factors they use. Although it is common
knowledge what factors they may use, we know for sure what they
cannot utilize in determining FICO scores, such as race, gender,
sexuality, and religion. The following are possible components
in FICO score determination:
unpaid credit balances;
means and method of past credit payments;
past credit problems like bankruptcy and failed/late payment;
other considerations, like amount of credit history
Are There Ways to Increase My FICO Score?
Since FICO scores are determined by analyzing credit history over a
span of years, it is not feasible to increase your FICO score over a
small length of time. However, your can increase your FICO
score over the long haul with some patience. Some ways do this
and also increase your chances for better home equity loan rates and
possible home equity loan refinancing are:
insuring your current bills are fully paid and punctual;
nullifying or drastically reducing your current indebtedness;
keeping a minimum of open credit accounts;
Steering clear of foreclosures and bankruptcy.
TIP: If you would like to examine your own credit
history, you can do so by requesting a credit report from the
following chief reporting agencies -- Equifax, Experian, and TransUnion.
P.O. Box 105873
Atlanta, GA 30348
P.O. Box 2104
Allen, TX 75013-2104
Trans Union LLC
Consumer Disclosure Center
P.O. Box 390
Springfield, PA 19064-0390