What Is the Importance of Knowing My FICO Score?
Your FICO Score is a three-digit number that 90% of top lenders use to assess your creditworthiness. It is calculated based on information in your credit report, including your payment history, amount of debt, length of credit history, and types of credit used. A higher FICO Score means you are a lower risk to lenders, and you may qualify for lower interest rates and better loan terms.
There are many reasons why it is important to know your FICO Score. Here are a few of the most important:
· To qualify for loans and credit cards. Lenders use FICO Scores to determine who is eligible for loans and credit cards. A higher score can increase your chances of being approved for a loan or credit card, and it may also qualify you for lower interest rates and better terms.
· To get a lower interest rate on a loan. Your FICO Score determines the interest rate you pay on a loan. A higher score can qualify you for a lower interest rate, which can save you hundreds or even thousands of dollars over the life of the loan.
· To rent an apartment. Some landlords use FICO Scores to screen potential tenants. A higher score can make you a more attractive tenant, and it may help you get the apartment you want.
· To get approved for a mortgage. When you apply for a mortgage, lenders will look at your FICO Score to determine how much you can borrow and your interest rate. A higher score can qualify you for a larger loan and a lower interest rate, which can save you thousands of dollars over the life of the mortgage.
· To get a job. Some employers use FICO Scores to screen potential employees. A higher score can make you a more attractive candidate, and it may help you get the job you want.
There are a few things you can do to improve your FICO Score:
· Pay your bills on time. This is the most important factor in determining your FICO Score. Make sure to pay all your bills on time, including your credit card bills, car loan payments, and mortgage payments.
· Keep your credit utilization low. Credit utilization is the amount of debt you have compared to your available credit. Try to…