The FICO score is the most popular credit score model in the country. It’s a statistical calculation based on the information in your credit profile.
FICO reports several types of scores. Each is tailored for a different purpose, such as a credit card, personal, installment, auto or mortgage loan. A score from one model might not have accurate bearing for the next.
The common range of scores runs from 300 up to 850. Scores vary by year and economic conditions, yet typically, approximately 60 percent of U.S. consumers fall between 650 and 799.
Are you wondering if no credit is just as bad as poor credit?
It can be. You need to have at least a few established credit accounts to develop a score, and you need a score for most loan programs.
It’s great to keep your spending under control by only using cash, but if you ultimately need to finance the purchase of a home, the sooner you solidify a good payment history the better. Without using credit, there’s nothing for the bureaus to use as a basis for their scoring algorithms.
A good mix makes for the best start. For example, get a bank overdraft credit line, a credit card and an installment loan, such as an auto or personal loan.
If you have questions about managing your credit, contact your Fidelity Bank Loan Officer.