What is FICO?
FICO® is a scoring system for your credit that has now developed into the most widely used credit bureau scoring system.
These are known as FICO® scores. A very commonly used number that is mysterious as to how it is determined. Very much like the secret formula for Coca Cola.
However, unlike Coke, it is not always refreshing and tasty. Even with that being said, it is not something to be scared of or feared. It is something to be understood so that you can improve it and use it to your advantage.
Who is FICO®?
FICO® is an acronym for Fair, Isaac and Company. This is the company that has developed the credit bureau scoring system.
Whenever you are attempting to
qualify for credit, chances are your FICO® score is being evaluated.
When you apply for a car loan, apply for a mortgage or complete a credit
credit card application, the financial company or credit card company
checks your FICO® score and credit report.
Where is my FICO® score used?
Your FICO® score is typically used whenever a person or business is thinking about lending you money or making sure you have the ability to pay. Lending institutions, banks, mortgage companies, landlords, retail business, car dealership, and even insurance companies, etc.
Why is my FICO® score important?
Your FICO® score is important because it It establishes your ability to repay if a company issues credit to you.
How is my FICO® score used in establishing my credit worthiness?
Depending on what your score is, it gives lenders an indication as to whether or not you pay your bills on time---or at all and how you manage your existing credit. Whether you have good credit or bad credit, your FICO score lets financial companies know how much of a credit risk you are.
Go Home to Credit Repair Mom