Credit Card Debt $ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+ Other Unsecured Debt $ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+ Number of Creditors    Select One 2 3 4+ Status of Bill Payments    Select One Up to Date About to Fall Behind 1 Month Behind 2 or More Months Behind I want to    Select One Eliminate My Debt Consolidate My Debt Seek Advice Own a Home?    Yes  No

What is FICO or Credit Score?

Fair Isaac Corporation developed the most widely used credit scoring algorithm or model. It is a general risk score, rating, that indicates the probability of default. The higher the FICO score, the lower the risk. Creditors have different pricing tiers based on the score level. The number is the result of complicated calculation based in the data in your credit report. The FICO score ranges from 300-850; other scoring models use different ranges.

TransUnion and Experian have their own scores. TransUnion's is called "Empirica" and Experian's is called "PLUS Score" but these are not true FICO scores. Equifax uses the true FICO score, privately labeled as "Beacon"

You need three things in order to have a score created on your file : (1) at least one account that is 6 months or older; (2) reported activity in the last 6 months; (3) no deceased indicators, which means no message stating "Social Security number reported as deceased"

Your credit score is based on five factors. These factors and their percentage impact on the score's calculation are as follows:

- 35% - Payment History ( bankruptcies, late payments and collections)

- 30% -Outstanding debt (credit card balance and number of cards) also known as utilization.

- 15% - Length of credit history (age of oldest credit account, average age of accounts, time since accounts were used)

- 10% Pursuit of new credit (number of inquiries from potential lenders and newly opened credit accounts)

- 10% Types of credit (bank cards, department store cards, finance companies, secured, unsecured). The scoring model likes to see a balanced report, with both installment and revolving accounts.

Items that the FICO scoring model Ignores:

- Consumer generate inquiries

- Gender, race, religion, occupation, whether the consumer is a homeowner, time lived in a home, zip code or even income level)

- "Promotional" and "Account Review" inquiries (Account review inquiries are the periodic checks done by your current creditors - usually card issuers-to see how you are doing)

- Accounts that are notes as being "under dispute"; for example, you question charge on your credit card billing statement. The creditor should report your account as being under dispute.

- Participation in a debt management plan (this may be reported by creditor, but the scoring model does not factor in into your score)

- New FICO scoring models will ignore an open revolving tradeline of the credit limit is missing.