Why would a creditor use a FICO score over non FICO?

Lenders know what they are getting when they review a FICO Score. FICO Scores are trusted to be a fair and reliable measure of whether a person will pay back their loan on time. By consistently using FICO Scores, lenders take on less risk, and you get faster and fairer access to the credit you need and can manage.

Does pulling your FICO score hurt your credit?

In general, credit inquiries have a small impact on your FICO Scores. For most people, one additional credit inquiry will take less than five points off their FICO Scores. Inquiries can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk.

Is a 609 FICO score bad?

A FICO® Score of 609 places you within a population of consumers whose credit may be seen as Fair. Your 609 FICO® Score is lower than the average U.S. credit score. Consumers with FICO® Scores in the good range (670-739) or higher are generally offered significantly better borrowing terms.

Can I buy a house with a 615 credit score?

The most common type of loan available to borrowers with a 615 credit score is an FHA loan. FHA loans only require that you have a 500 credit score, so with a 615 FICO, you will definitely meet the credit score requirements.

How will opening a new account affect my FICO® score?

New accounts will lower your average account age, which will have a larger effect on your FICO ® Scores if you don’t have a lot of other credit information. Even if you have used credit for a long time, opening a new account can still lower your FICO Scores.

What is a FICO score and why does it matter?

FICO Scores reflect this reality. However, research shows that opening several new credit accounts in a short period of time represents greater risk – especially for people who don’t have a long credit history. Your FICO Scores take into account several factors, including how you shop for credit.

How will the New Credit Score model affect my score?

Two reasons: The length of your account history currently makes up 15\% of a FICO score. (Longer is better.) More importantly, your credit card utilization already counts for 30\% of your score and could become even more important in the new model. (Your utilization is the percent of your available credit lines you’re using. Lower is always better.)

Is opening too many new credit accounts bad for your credit?

However, research shows that opening several new credit accounts in a short period of time represents greater risk – especially for people who don’t have a long credit history. Your FICO Scores take into account several factors when looking at new credit. Your FICO Scores look at how many new accounts you have by type of account.