What Is a FICO Score?

December 3rd, 2020 by
What is a FICO Score?

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You might be wondering what is a FICO score? What does it mean to me? What affects my score? You are not the only one. 

Here are the answers to some important questions, according to MyFICO.com:

What is a FICO score?

A FICO score is what lenders use to help determine what level of credit they can give you. It’s a three-digit number that is a risk factor. The higher the number, the more likely you are to be accepted for credit as you are more likely to repay your lenders.

Why does it matter to me?

Have you ever had your eye on a new bike or dreamt about a much-needed vacation? If you don’t have the funds in your account, you would apply for financing. The lenders use your FICO score to determine your interest rate and also your likelihood of repaying the loan.

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What can affect my FICO score?

A number of factors can determine a FICO score. These can range from late or missed payments, numerous accounts open on your credit report, high balances on those open accounts, to collection agencies trying to collect a debt.

Where can I get more information?

You can find out more by heading to the MyFICO website.

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