As this is a Los Angeles Real estate blog, I believe an update on FICO scores is appropriate.  I recently received this from Floyd, owner of BWA Mortgage:




Fact #1:   According to the Fair Isaac web site, the range of FICO scores is from 300 to 850.  Of course, the higher the score the better.  Most mortgage lenders in today's market consider 740 and above as the top tier but many will make home loans with lower scores. The median credit score in the United States is 723!
 
Fact #2:   FICO is the registered trademark of the Fair Isaac Company.  A true FICO score is based on the Fair Isaac model.  There are many credit score models but beware, most lenders currently use only FICO scores.  If it does not say FICO it's not a score most lenders will use.
 
Fact #3:   From the Fair Isaac web site, the following items are taken into consideration when Fair Isaac is producing your score:

• Your payment history accounts for 35% of your score;

• The amount you owe, accounts for 30% of your score;

• The length of your credit history accounts for 15% of your score;

• New Credit accounts for 10% of your score;

• The Types of Credit used accounts for 10% of your score.