BluefoxToday blog : May 2007

FICO primer III

This is the third part on how FICO works. To be able to fully follow the flow of discussion, it would be to your benefit to first read FICO primer I and FICO primer II.

In this segment we're going to take a look at what is included in your credit report. Personal information comes first. Your name, present address, Social Security number, date of birth and employment information are in it. They are solely used to identify you and have nothing to do with your score. This is the information you give to lenders in an application and they in turn pass it on.

Then there are the accounts you've opened with lenders. Each one gets reported separately. The data in them includes the type of account, like mortgage loan or credit card, the date it was opened, the loan amount or credit limit, the present account balance and the payment history. That is everything you do with the account.

Inquiries are also on the report. There are two kinds of them. Voluntary means that you have requested credit and in the process authorized a lender to access your report. Involuntary, on the other hand, indicates that a lender has obtained your report for scrutiny in preparation for extending you a preapproved credit offer. These typically are the credit card solicitations you from time to time receive in your mailbox.

If an account falls behind in payments, or goes delinquent, lenders report that as well. They also gather public record information from state and county courts and collection firms on overdue debt. Bankruptcies, foreclosures, garnishments, law suits, tax liens and judgments all are part of the public record.


Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst - syndicated mortgage, housing and property management blog
My cell: 702-499-1006

Comment balloon 0 commentsEsko Kiuru • May 08 2007 12:33PM
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