what's not in your score

FICO scores consider a wide range of information on your credit report. however, they do not consider:

• your race, color, religion, national origin, sex and marital status: us law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the consumer credit protection act.
  
  
• your age: other types of scores may consider your age, but FICO scores don't
  
  
• your salary, occupation, title, employer, date employed or employment history
  
  
• where you live
  
  
• any interest rate being charged on a particular credit card or other account
  
  
• any items reported as child/family support obligations or rental agreements
  
  
• certain types of inquiries (requests for your credit report): the score does not count "consumer-initiated" inquiries - requests you have made for your credit report, in order to check it. It also does not count "promotional inquiries" - requests made by lenders in order to make you a "pre-approved" credit offer-or "administrative inquiries" - requests made by lenders to review your account with them. Requests that are marked as coming from employers are not counted either
  
  
• any information that is not proven to be predictive of future credit performance
  
  
• whether or not you are participating in a credit counseling of any kind
  
  

how credit scoring helps you

credit scores give lenders a fast, objective measurement of your credit risk. before the use of scoring, the credit granting process could be slow, inconsistent and unfairly biased.

credit scores - especially FICO scores, the most widely used credit bureau scores - have made a big improvements in the credit process. because of credit scores:

• people can get loans faster:scores can be delivered almost instantaneously, helping lenders speed up loan approvals. today many credit decisions can be made within minutes. even a mortgage application can be approved in hours instead of weeks for borrowers who score above a lender's "score cutoff". scoring also allows retail stores, internet sites and other lenders to make "instant credit" decisions.
  
  
• credit decisions are fairer:using credit scoring, lenders can focus only on the fats related to credit risk, rather than their personal feelings.
  
  
• credit "mistakes" count for less: if you have had poor credit performance in the past, credit scoring doesn't let that haunt you forever. past credit problems fade as time passes and as recent good payment patterns show up on your credit report. unlike so-called "knock out rules" that turn down borrowers based solely on a past problem in their file.
  
  
• more credit is available: lenders who use credit scoring can approve more loans, because credit scoring gives them more precise information on which to base credit decisions. it allows lenders to identify individuals who are likely to perform well in the future, even though their credit report shows past problems. even people whose scores are lower than a lender's cutoff for "automatic approval" benefit from scoring.
  
  
• credit rates are lower overall: with more credit available, the cost of credit for borrowers decreases. automated credit processes, including credit scoring, make the credit granting process more efficient and less costly for lenders, who in turn have passed savings on to their customers. and by controlling credit losses using scoring, lenders can make rates lower overall. knowing and improving your score can also lead to more favorable interest rates.