A FICO score is a numeric score that summarizes your credit history. FICO scores are provided to lenders by credit reporting companies. The score is intended to be a predictor of whether you are likely to repay a loan according to the loan terms. In addition to your FICO score, lenders may base their decision to issue you credit on:

• your income and how it compares to your prospective payment amount;
• other debt payments you are making; and
• the appraised value of your home.

What is "A" Credit?
While factors vary, typically individuals with FICO scores above approximately 620 are deemed to be "A" credit borrowers. Generally speaking, the higher above this figure your credit score is, the greater your likelihood of being approved for the loan you want.

Potential borrowers with FICO scores below 620 can often still qualify for a mortgage, but the product might not be as well-priced or might have other less-favorable features.

How is My FICO Score Determined?
FICO scores are calculated and provided by a company called Fair, Isaac & Co. The company has statistically analyzed credit histories of a large number of borrowers, and has used those analyses to predict which factors in a person's credit history may indicate future inability to repay debts.

The specific factors that are used, and how they are used, are proprietary to Fair Isaac and are not known. However, they are prohibited by law from including factors that would be discriminatory (e.g. race, religion, gender). Factors that may be used to determine your FICO score include:

• the amount of credit you have outstanding;
• how you have paid it back;
• any problems with credit you may have had in the past (e.g. late payments, bankruptcies); and
• other factors.

How Can I Improve My FICO Score?
FICO scores consider your credit history over several years, making it difficult to increase your credit score in a short time frame. Over the long term you can improve you credit-worthiness by:

• reducing your total indebtedness;
• making your debt payments on time and in full;
• closing unneeded credit accounts; and
• avoiding bankruptcy and foreclosures.