A FICO credit score is a complex calculation of all your past financial activities in a numeric value from 300 to 850, 300 is the worst and 850 being the best. Your FICO score is used by financial institutions to determine whether you qualify for a loan or other credit related services are appropriate.
It is very important for you to understand how your FICO score impacts your financial options, and as a result of yourLife. Your FICO score is based on your credit report. A credit report is a history of all past financial activities, credit cards, utility bills, mortgage and your payment history. A better credit history leads to a higher FICO credit score. Banks and other lenders use this score to your risk of future rate payments on time, which will reduce its risk.
FICO scores from 300 to 850, and cansummarized as follows:
700 to 850 - excellent or very good credit
680 to 699 - Good Credit
620 to 679 - Okay or Average Credit
580-619 - Low Credit
500-580 - Poor Credit
300 to 499 - Bad Credit
Your FICO Score is a very large number when it comes to your finances, it shows the lender your reputation, and tell them how much confidence in you, they should lend. The higher your credit score, the more you will be able to pick and --Select the terms of your loan including lower interest rates. Set the monitoring of your FICO credit score and credit report, annual financial part of your routine. If you leave your credit card away from you it could take years numbing frustration, or desire, it again sought-after area.
How can I improve my FICO Score and Credit Report?
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