FICO - A Key Piece of the Puzzle

Did you know that FICO Credit Scores are used in making over ten billion credit decisions each year? If you're thinking of buying or refinancing a home, there are other elements that will also affect your ability to get approved for a loan such as income and employment history, but the majority of financial institutions use the Fair Isaac Corporation (FICO) score to decide whether or not to offer credit or make loans to consumers. There are many aspects of formulating credit scores that FICO holds as closely guarded secrets; however, they do disclose the five main factors that impact an individual's score:


  • 35% Payment history
  • 30% Debt amount
  • 15% Length of credit history
  • 10% Credit mix
  • 10% New credit


These five factors are not as simple as they may sound. The good news is, your FICO credit score is a snapshot in time and there are ways to increase it – with analysis, planning and guidance. Universal American Mortgage Company was founded based on the principle of lowering the barriers to homeownership for Americans – and we can definitely be of assistance.