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A FICO Score is a three-digit number that helps lenders decide how likely you are to repay a loan. It's a key factor in getting approved for credit and what interest rate you'll pay.
In Depth
Your FICO Score is calculated using information from your credit reports, including your payment history, amounts owed, length of credit history, new credit, and credit mix. A higher score indicates lower risk to lenders, often leading to better interest rates and easier approval for loans and credit cards. Scores typically range from 300 to 850, with 670 and above generally considered good credit.
Example
Before applying for a mortgage, Sarah checked her FICO Score to see if she qualified for the best interest rates.