What Is the Importance of Knowing My FICO Score?
Your most important credit 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.
