What is My Fico Score? Understanding the Fair Isaac Scoring System. Your FICO score is a numerical figure between 300 and 850, with 300 being the worst and 850 being the best.
"What is my fico score," is a very important question that you should be asking. Perhaps you have heard of the fico score, but wondered what this score was all about. You need a good fico score explanation.
This score is a score that comes to represent your credit history and it is a standard that the credit reporting agencies now use.
Here is a closer look at this score, why it's important, what is included, and even information on how to fix my credit report and raise credit score fast.
Why Your Score is Important
When you are wondering, "what is my fico score," it's so important that you get a good fico score explanation as to why this score is so important. It is very important because it's a score that is going to end up following you through your life.
When you try to purchase a home, buy a car, get a personal loan, get a job, or even try to rent an apartment, people are going to look at that score. It will determine whether you can get credit, and it also will determine the interest rates you will get as well. It's a good idea to check my fico score, and if it is low, find out how to raise credit score fast.
The Difference Between Your Score and Your Credit Report
Many people who wonder, "what is my fico score," also are unsure of what the difference is between the fico score and a credit report. The credit report happens to be an account of your credit history that is very detailed. It often includes things like credit inquiries, payment history, bankruptcy, credit accounts, and more.
The Fico score actually is a number that is based upon your credit history, although it's not an actual part of the credit report.
What Your Score Includes
A good fico score explanation will show you what is included in that fico score. A lot of different information is taken into account from the credit report, but it is weighted differently. Some things are more important when it comes to calculating your credit score.
Your payment history accounts for the largest part of the score, at 35%. The total amount that you owe is 30 % of your score. The length of your credit history accounts for 15%, and then the type of credit and new credit both make up 10% of the total score.
Tips for Fixing Your Score
Once you find out, "what is my fico score," you may realize that you have a problem and you need to raise credit score fast. If you do have a lower score, there are some things that you can do to improve the score.
The great news is that your score changes all the time, so it's possible to work towards a higher score. One thing you can do to raise your score is to make your payments on time. Learn to fix my credit report as well, since errors on your credit report may lead to a lower score.
Reducing your debt is also a great tip that will help you to get a higher fico score. With these tips, you can increase your score, making it easier to get credit with better interest rates - a great way to save some money.
Monitoring your FICO score and credit report is considered the most important financial practice that you can do. Frequent checking of your free FICO score and credit report will help you to understand the category you are in and the position you are holding in the eyes of banks and other lenders.
Because your credit report and FICO score are so important to your finances it's a good idea to look at them at least once a year. Because of the prevalence of fraud and identity theft, you need to be aware of any changes in your credit report and FICO score.
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Disclosure: I am an independent Credit Repair Cloud™ Affiliate, not an employee. I receive referral payments from Credit Repair Cloud. The opinions expressed here are my own and are not official statements of Credit Repair Cloud.