The Fico Algorithm: Cracking The Credit Scoring Code
How Does FICO work?
A very wise man once said, "the only source of knowledge is experience". That man happened to be Albert Einstein. If any company or person tells you that they know the FICO algorithm, then stop working with them immediately.
What we have learned at Credit Blueprint over the years is that we will never crack the credit code or FICO algorithm. However through trial and error and years of experience we have a solid understanding of what moves scores up and what moves scores down. Our customers get the benefit of time tested strategies that go far beyond what you read on the internet about improving your credit scores.
What is FICO?
FICO was first introduced in 1989 and stands for the Fair Issac Company/Corporation. The range goes from 300 to 850, although Credit Blueprint has only seen one score ever above 840. It's the credit scoring model that most lenders use therefore it's the only model that matters.
Credit scores are designed to measure risk of default by taking into account the following various factors: 1) Payment History (35%) 2) Revolving Utilization or Amounts Owed (30%) 3) Length of Credit History (15%) 4) Types of Credit Used (10%) 5) Inquires (10%)