It’s Important to Understand Your Credit Score.
We’ll teach you how through Credit 101!
Whether you’re buying a home, a car or applying for a credit card – lenders want to know the risk they’re taking by lending your money. FICO scores are the credit scores that most lenders use to determine your credit risk. Your FICO credit scores (you have 1 score from each of the 3 major credit bureaus) can affect how much money a lender will lend you and at what terms (interest rate). So, taking steps to improve your FICO scores can often help you qualify for better rates from lenders – which can save you money!
FICO scores range from 300-850 – higher is better. Your FICO score is calculated using the information in your credit reports. These reports contain all of the information that each credit bureau has on file about you. This sample credit report shows a few examples of the types of information that the credit bureaus collect, such as your credit accounts, how many times lenders have requested information about your credit (Inquiries), and how many times lenders have turned your account over to a collection agency (Collections).