Little ditty on 625 credit scores over at the WOF. This is used by permission.
A credit score of 625 is very common if you have had some credit problems and no bankruptcy. I bet you are wondering how the Fair Isaac algorithm decided you have a credit score of 625.
The Fair Isaac score starts at three hundred and goes as high as nine-hundred. Just be glad you don't have three hundred. Ain't nobody talking to you then!
Anyways...a credit score of 625 would be calculated 10% on the "types of credit you have", 10% on "recent inquiries on your credit report", 15% on the "length of your credit history", 30% on your "outstanding debt", and 35% on your "payment history".
As you can see, if you outsanding debt and your payment history is OK then you are not doing too bad.
Factor 1 = 35% on your payment history.
Factor 2 = 30% on your outstanding debt.
Factor 3 = 15% on the length of your credit history
Factor 4 = 10% on recent inquiries on your credit report.
Factor 5 = 10% on the types of credit you have.
So lets figure out a credit score of 625 shall we. Above I stated the range starts at 300-900. The half way mark between 300 and 900 is 600. So taking in the factors listed above, a credit score of 625 is 25 points above the half way point. You could score a zero, goose egg, nothing, on factors 3-5, but if factors 1 and 2 are good, you are usually golden.
For more direct information on Fair Isaac and their fico scores, or more information about a credit score of 625, you can find all of this information at http://www.fairisaac.com/.
This is a very good website and their is lots of information all to do with credit scores and credit concerns. I have used this site to glean new and updated inforamtion on the subject of "bad credit loans".
If you need a loan and you have bad credit, you can visit Credit.com. They are in the business of providing bad credit applicants the financing they need.
Dan The Mortgage Man – Video Appearance