Learn About FICO Credit Scores

"Learn About FICO Credit Scores" - A FICO Credit Score is a 3 digit score that can shape or effect financial future, whether you plan to buy a new car or qualify for a reasonable mortgage loan to buy the home of your dreams. Your credit score is a determining factor in whether you obtain financing and at what cost, and there’s never been a better time to clean up your credit history and boost your score.

With today’s tightened credit market and lenders becoming more selective about issuing loans, a good credit score has become more important than ever. Lenders consider credit scores when determining the risk associated with a loan application, especially for people looking to buy a home. Many know well that credit can be the difference between simply finding the home of your dreams and actually buying the home of your dreams.

The 1st step in improving your FICO credit score is to know where you stand. Your credit records have been reduced to a 3 digit score commonly known as a FICO, or Fair Isaac & Co., score. Each of the three major credit bureaus (TransUnion, Experian and Equifax) have assigned a score that shows how likely you are to pay back a loan on time, the higher the score, the lower your presumed risk of default. By law, you may obtain one free report annually from each bureau online at www.AnnualCreditReport.com. By accessing your credit information one agency at a time, you can get a free credit report three times a year.

The average U.S. credit score is 694, according to Experian’s National Score Index. FICO credit scores can range from 300 to 850 and are based on the length of your credit history, the mix of credit you already have, and your number of recent credit applications.

"How To Imrove My FICO Credit Score" - Once you know your FICO score, you can work toward improving it. But improving your credit score can require time and commitment.

For most, credit is a way of life. Installment payments and credit cards can be useful financial tools if they are kept under control, but many let credit control them.

A good credit score is a consumer’s financial calling card, and it is important that they do everything they can to boost their score and put themselves on the best financial footing possible.