What can affect an applicant's FICO score?

The FICO score, which stands for Fair Isaac Corporation score, is a widely used credit score that helps lenders assess the creditworthiness of an applicant. Outstanding debt significantly impacts an applicant's FICO score because it reflects how much credit an individual is currently utilizing compared to their available credit limit. A higher level of outstanding debt relative to the available credit can indicate a higher risk to lenders, potentially lowering the FICO score.

Moreover, aspects such as current income level, employment type, and property value do not directly influence the FICO score. While current income and employment may affect an individual's ability to pay debts, they are not directly factored into the calculation of the FICO score. Property value can play a role in financial evaluations, particularly in mortgage considerations, but it does not impact the score itself. Thus, outstanding debt remains a key factor in determining the FICO score, highlighting the importance of managing credit responsibly to maintain a favorable credit rating.