Your FICO Score – A Vital Part of You Credit Health
When you’re applying for credit – whether it’s a credit card, a car loan, a personal loan or a mortgage – lenders want to know your credit risk level. To help them understand your credit risk, most lenders will look at your FICO score, the credit score creaded by Fair Isaac Corporation which is available from all three major credit reporting agencies.
What is a credit score?
A credit score is a number lenders use to help them decide: “If I give this person a loan or credit card, how likely is it that I will get paid back on time?” A score is an estimate of your credit risk based on a snapshot of your credit report at a particular point in time.
The most widely used credit scores are FICO scores. Lenders use FICO scored to help them make billions of creditdecisions every year. Fair Isaac develops FICO scores based solely on information in consumer credit reports maintained at the credit reporting agencies.
Your credit score influences the credit that’s available to you, and the terms (interest rates, etc.) that lenders offer you. It’s a vital part of your credit health.
Understanding your FICO score can help you manage your credit health. By knowing how your credit risk is evaluated, you can take actions that will lower your credit risk, you can take actions that will lower your credit risk – and thus raise your credit score – over time. A better FICO score means better financial options for you.
We will be periodically posting information that can help you improve your credit health by helping you understand how credit scoring works. More information on FICO scored and credit scoring can be found online at www.myFICO.com. You can also get your FICO score, credit report, and specific tips on how to improve your score. Check it out today
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