Credit report and fico score

Credit report contains a complete record of your credit history. It includes how much credit you have extended, credit cards and prior applications for loans. Besides, it also includes your present as well as past addresses along with the names of the companies where you worked. Moreover, a credit report contains the name and variation that you have ever used to obtain or apply for credit. Your every move in terms of finance can be tracked down with the help of a social security number. In a credit report, fico score or Fair Isaac Corporation is calculated by applying some statistical methods. Credit report fico score is basically used in the consumer banking and credit industry. Your request for credit can be denied or you might be charged higher interest rates by banks and other financial institutions that incorporate scores as one of the factors in their lending decisions if your credit score is considerably low.

An individual’s credit history suggests to lenders about how the person pays his/her bills. It allows lenders and creditors to check whether you can make a good candidate for a loan or credit card. The models that help generate credit score falls to the federal regulations. The Federal Reserve Board's Regulation B that implements the Equal Credit Opportunity Act completely prohibits a model for a credit score fico score from considering any "prohibited basis", including race, sex, color, nationality, religion and marital status.

More often than not, the most used model for credit report fico score is mainly for consumer banking and credit industry. FICO scores display how frequently a borrower is likely to default. But, there is no source of public information to find out what the scores mean in terms of statistics. Though Fair Isaac’s website offers to sell their fico score to its consumers, the company proposes to use different scoring methods in order to rate a consumer’s suitability for three different types of credit including auto loans, consumer credit and mortgages. It reflects different kinds of risks regarding different types of lending. It is a common feature of these scores to differ by 50 points or more for the same borrower.