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Interpreting
Your Score
When a lender
receives your Fair, Isaac credit bureau risk score,
up to four "score reason codes" are also
delivered. These explain the top reasons why your
score was not higher. If the lender rejects your
request for credit, and your FICOŽ score was part
of the reason, these score reasons can help the
lender tell you why your score wasn't higher.
These score
reasons are more useful than the score itself in
helping you determine whether your credit report
might contain errors, and how you might improve your
score over time. However, if you already have a high
score (for example, in the mid-700s or higher) some
of the reasons may not be very helpful, as they may
be marginal factors related to the last three
categories described previously (length of credit
history, new credit and types of credit in use).
Common score
reasons
Here are the top 10 most frequently given score
reasons. Note that the specific wording given by
your lender may be different from this.
- Serious
delinquency.
- Serious
delinquency, and public record or collection
filed.
- Derogatory
public record or collection filed.
- Time since
delinquency is too recent or unknown.
- Level of
delinquency on accounts.
- Number of
accounts with delinquency.
- Amount owed on
accounts.
- Proportion of
balances to credit limits on revolving accounts
is too high.
- Length of time
accounts have been established.
- Too many
accounts with balances.
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