FICO Score

FICO Score. FICO is a credit score scale used by many mortgage lenders that use a risk-based system to determine the possibility that the borrower may default on financial obligations to the mortgage lender.

What Is Your FICO Credit Score?

Lenders use FICO scores to decide whether to lend you money, and what interest rate you'll get. It's very important that you have a good score, or else you'll be denied auto loans, mortgage loans, or even cell phone or other payment plans. Insurance companies are even using your FICO score to decide what to charge you! If you want to qualify for any loan and get a low interest rate that will save you a ton of money, you need to have a solid FICO score.

FICO scores range from 300 to 850. Most people have a pretty decent score--the median is 723. That score will get you favorable loans. But if you're the type of person who is late on your bills or maxes out your cards or commits any number of other credit no-nos, your score will be much less than this. And to put it simply, a low FICO score sucks. So you want to know, what's your FICO score? This quiz will give you a good idea. Answer honestly.

Fair Isaac Corp., the developer of the FICO score, is preparing to pull the plug on schemes that allow high quality credit card histories to flow into the credit files of people with bad credit, thereby boosting scores.

All about your FICO Score

How to Calculate a FICO Score?

Your FICO score is calculated based on your payment history, your outstanding balances, length of credit history, any new credit you have, they types of credit you've used, and your credit report. So in other words, it's nearly impossible for you to calculate your own FICO score. Each area of your credit is weighed and used differently in calculating your credit score. However, each area is vital to getting a high FICO score, so you need to be mindful of paying your monthly bills on time and managing your existing credit. Even a few late payments can negatively affect your score.