How Is a FICO Score Determined?

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A FICO score is determined by combining the scores of the three credit reporting bureaus. Those scores are determined by looking at an individuals available credit, history of bill payment and employment history. Raise a FICO score by paying bills on time and keeping the credit to debt ratio low with advice from a registered financial consultant in this free video on personal finance and money management.

Part of the Video Series: Personal Finances & Money Management
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Video Transcript

This is Financial Adviser Patrick Munro talking about, "How is a FICO Score determined?" A FICO Score is the mergence, tri-mergence of three different credit bureaus; The Equifax Report, the Experian Report and the Tran-Union Report. Each of these scores looks at a creditor and how they handle their affairs in slightly different ways but also quite similar ways. Most notably is, how much credit is available to the individual; also how timely is the credit paid; in other words, do you have any late payments. If you do not, that's a good score. If you have some, that's not so good and if you don't pay your bills on time, you of course have a low score and need to work on that. Length of time at your job, if you are working is a very key and is track as well. And also, how much of your credit card that is available are you using in any given time. Try to keep that ratio reasonable; normally not over at thirty three and one third percent. These are some of the key factors on how a FICO Score is determine. It's Financial Adviser Patrick Munro.

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