Part 3 - Factored Out What Lenders Look At, What's Important And What's Not

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By Mia Bolaris-Forget

While FICO® scores take into account a range of information pertaining to your personal credit history, there are some aspects they don’t consider. These include the following:

· Race, Creed, Color, National Origin, Sex, and Marital Status: According to U.S. law companies are prohibited from basing their decision on such personal factors. They may also not be “influenced” by receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.

· Age: While other types of scores may account for age, FICO does not.

· Salary, Occupation, Title, Employer, Date Employed or Employment History: Lenders can consider this information, however, as may other types of scores.

· Location and Type of Residency: Where you live

· Interest rate on credit card or other account

· Reported items of support: Child/family support obligations or rental agreements.

· Specific Inquiries (request for your credit report): Your score does not reflect “consumer-initiated” inquiries (request you’ve made for your credit report to check it). It also doesn’t count “promotional inquiries”(requests made by lenders to make you a “pre-approved” credit offer. And, it doesn’t consider “administrative inquiries” (requests made by lenders to review your account with them. Request that are flagged as employer based are also discounted.

· Information not found in your credit report

· Information not proven t be predictive of future credit realization

· Participation in credit counseling

Continue To Part 4 - "Making The Grade" >>