Zach Ford asked:




A FICO credit score is the complex calculation of all of your past financial activities into a numerical score between 300 and 850, 300 being the worst and 850 being the best. Your FICO score is used by financial institutions to determine whether you are suitable for a loan or other credit related service.

It is very important for you to understand how your FICO score impacts your financial opportunities and, as a result, your life. Your FICO score is based on your credit report. A credit report is a history of all previous financial activities, credit cards, utility bills, mortgages, and your payment history. A better credit history results in a higher FICO credit score. Banks and other lenders use this score to evaluate your likelihood of making future payments on time, thus reducing their risk.

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

700 – 850 — Excellent or Very Good Credit

680 – 699 — Good Credit

620 – 679 — Okay or Average Credit

580 – 619 — Low Credit

500 – 580 — Poor Credit

300 – 499 — Bad Credit

Your FICO Score is a very important number when it comes to your finances, it shows lenders your reputation and tells them how much trust they should bestow in you. The higher your credit score, the more you will be able to pick and choose the terms of your loan, including lower interest rates. Make monitoring your FICO credit score and credit report part of your yearly financial routine. If you let your credit get away from you it could take years or mind numbing frustration to get it back into a desirable range.

How Do I Check My FICO Score and Credit Report?

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