Even if FICO scores are used by most financing firms and institutions to determine one's creditworthiness, one must remember that it is not the sole criteria for being granted credit or loans. It is merely a part of the credit decisions that financial institutions use to determine whether or not one is worthy to be given credit to. FICO score credit ratings are determined by carefully considering relevant information such as the amount of debt that one can handle reasonably based on the person?s current income. One's income is also subject to several factors such as security of tenure, employment history and even credit history while working in a particular company. Information about all these contribute to a person's FICO score credit ratings and are used together with pre-determined conditions to approve or disprove credits or loans even if FICO scores are low. In the same way that high FICO score credit ratings are not guaranteed to secure credits or loans.
FICO score credit ratings fluctuate and vary over time. Having a poor FICO score does not mean that one can never obtain credit or loans. A poor FICO score credit rating may only provide information for that particular time and can be improved when one takes on ways of managing his/her accounts. Although past FICO scores may be considered, financing institutions commonly request for current FICO scores based on the most recent account information about the person. If credits are managed well over time, then one is assured of obtaining higher FICO score credit ratings.
Contrary to popular belief, FICO score credit ratings do not favor race, gender, marital or employment status, rather they only consider credit-related information. This is further backed by government laws that prohibit lenders from using these given factors when approving credit.
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Source: www.ezinearticles.com