Playing by the Numbers

We recently had the opportunity to see our current Fair Issac Corporation score.  The FICO uses mathematical models to determine a lending institution’s credit risk for repayment based on payment history, a consumer’s current level of indebtedness, types of credit used, length of credit history and any new credit. A FICO score above 650 (from a range of 300 to 850) is considered to be a safe risk!

The problem with a FICO score is that it is very sensitive.  Shop for a new car - even if you don't buy one - it goes down!  Miss a payment on something - no matter how insignificant - it goes down!  Have half a dozen credit cards stuck away in a desk drawer - even if you've never even used them - it goes down! 

I always tried to teach my kids – and grandkids – if you have a FICO score of 650 or more and a current temple recommend, you are most certainly on the right track in life!!!