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Houston - Car loans

A firm (Fair, Isaac & Co ) developed a credit-scoring technology called FICO that is the most used risk-evaluation score in the credit industry. To obtain the scores, the data are verified in a consumer's credit file through a proprieatry risk-prediction software.

FICO average scores range from 300 to 800, lowest score mean higher projected risk of default on a loan. You can order your personal credit history for a fee at 

For a cree credit report click here

The Fair Credit Reporting Act amended by congress in 1997 allows consumer to opt-out of pre-approved credit or insurance offers by calling 1 888 567 8688
This is not good news for expatriates which have no credit history in the USA .

How the FICO is composed?
10% refers to a mix of credit
10% refers to debt accumulation and inquiries
15% is length of credit history
30% is credit capacity
35 % is payment history

What lowers the score?
Missing payments (it can take up to 24 months with one late payment)
credit card at capacity (credit cards without limits are assumed to be at full capacity)
closing credit cards lowers capacity
excessive shopping for credit
opening various trade lines in a short period of time
having a high revolving (credit cards) to installments (home, car, phone...) loan ratio borrowing from finance companies

What does not affect your ratio?
debt ratio
length of residence
length of employment

To improve the score
pay down on credit cards
do not close credit cards or capacity will diminish
make payments on time (late payment effects will diminish over a 4 year period)
do slow down on opening credit lines
acquire a solid credit history with years of experience


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