Welcome !
The most important
three-digit number in your
life will most likely be
Your FICO score! Why is it so important? Well chances are slim that you
will hit the lottery, so you're probably going need to borrow some
money at some point to buy a new car, mortgage or simply a credit card
purchase.
So GUESS WHAT? Your lender is looking at your FICO score to determine
you credit worthiness.
With so much at stake, it's wise to find out where you stand and take
steps to raise your score if it's below 700, particularly before you
apply for a mortgage or other loan. Above 760 and you're in the upper
echelon. A score below 660 tells people you're not a good risk and
destines you for credit denial or subprime interest rates.
What is a Credit score?
The three major credit-reporting agencies -- Equifax, Experian and
TransUnion -- use software developed by Fair Isaac Corp. to rate your
risk for assuming debt based on your credit history. The result is
commonly known as a FICO score.The score is based on five factors, including payment history, the amounts you owe and the types of credit you've obtained. Personal information like income, occupation, age and marital status are not considered.
The FICO score can range from 300 to 850, although very few reach that pinnacle. Each credit bureau may assign you a different score, based on the information it receives from creditors.