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What is a Credit (Beacon, Fico) Score?

A FICO score (Beacon Score is the terminology used in Canada while FICO is the US terminology) is a score that tells a lender or creditor whether or not your are a good, average or bad credit risk.  The items that are involved in coming to a score and making a calculation may surprise you.  They will consist of:

• How many inquiries are on your account
• How man times you have been late on paying your accounts
• How many credit trades you have
• Whether or not you have gone over your limit
• How much of your limits you have outstanding
• Whether or not you have had collections, judgments, or a bankruptcy showing on your file
• How 'new' your trades are

FICO scores range from 400 - 875 with the average score around 680+.  Usually lenders will loan to people with 600+ scores.  For people with bruised credit, people whose credit scores are under the 600 mark, financing will usually come from Alternative or "B" lenders.  The interest rates for these lenders are still competitive in today's market.