What is FICO?

It is just like your SAT or ACT except that its more important and EASIER to inflate. FICO scales from 250 to 850 and can do more than get you into a program where you pay to do work. A high FICO can help you minimize life's largest expense: interest.

 

FICO is arbitrary and uses an algorithm determined by Fair Issac. This formula is secret (and ever changing) but beating the system is relatively easy. Make small payments on time every month.

 

“Paying Visa and Mastercard on time is the most important factor,” says Gerri Detweiler, author of the Ultimate Credit Handbook.

 

Experian-Equifax-Trans Union record payments on credit cards you apply for and get in your own name. Often the mistake of using your parents card that has your name printed on it is thought of as building you credit too. You have to apply for your own card!

 

Experian-Equifax-Trans Union make no record of $25 made on time or whether it was $500 or for that matter $50,000. A simple “on time” is recorded.

 

Not using a card isn't an on time payment. It's an inactive account.

Paying the minimum IS on time but not a good idea.

Paying 36 times in a row will get you a FICO of about 750-810.

 

Mortgages are available for people with six months of job experience PLUS a FICO of 700+. A 3 bedroom house for 150k has a payment of $800. Rent out the other two rooms fro $450 each and you can live rent free**

 

**except in NY and CA where $150k buys you a garage spot

Why is FICO important?! It minimizes your largest LIFE expense: interest. Check out the differences

FICO Score	Your Interest Rate	Payment
720-850	5.76%	$876
700-719	5.88%	$888
675-699	6.42%	$940
620-674	7.57%	$1,056
560-619	8.53%	$1,157
500-559	9.29%	$1,238