What is My FICO Score?

FICO credit scores are calculated from several angles of difference in your credit data. Your financial activities are represented by a numerical figure between 300 and 850, with 300 being the worst and 850 being the best. Your FICO score is used by all financial institutions to gauge whether or not you are qualified for a loan and/or other credit related services.

You must understand that how your FICO score affects your financial opportunities to a certain degree and, as a result, your lifestyle. Your FICO score is based on your credit report. A credit report is a complete history of all previous financial activities, back tracking from the day you started using up your credit cards, utility bills, previous and existing mortgages, and your payment history all throughout. A good credit history will result in a higher FICO credit score in your records. Financial institutions and other lenders use this score to come up with your potential of committing future payments on time and elaborates more of your character whether you are a credit risk or not.

FICO scores range between 300 and 850, and can be grouped as such:

650 to 850 = Good Credit

550 to 650 = Average Credit

300 to 550 = Low Credit

You must understand that your FICO score may very well change everything in your financial plans as it is also a very important number to all lenders about your reputation. This dictates them whether or not to grant you a loan, how much money they will lend you and how far they can extend their service. In the financial industry, this tells them about you, your past, present and future. If you score high in your FICO the more probability that you get to choose the kind of terms and service you want for yourself. This also includes lowering your interest rates as well. If you let your FICO fall then you will have a hard time recovering from your financial status and more frustration it entails by not taking care of your finances well. It could take years before you can recover so as early as possible be responsible on your spending and aim to have a high financial reputation.