It’s important to know your FICO Score because it tells your financial history and determines credit risk.
Created by Fair Isaac Corporation (FICO), lenders reference your FICO Score when you apply for a loan, credit card and insurance. If you’re in the market for a new job, take into account employers can access your FICO Score to judge your ability to manage your finances and reliability.
The FICO Score uses a numerical range of 300 to 850; the higher the score the lower your credit risk. The better your score, the more likely you’re approved for loans and the better your interest and insurances rates and chances at landing a gaining new employment.
Reduce your debt and be sure to pay your bills on time. Delinquency is a no-no. Pay attention and stay focused on your budget. Setup payment reminders. Be as familiar with your FICO Score as your friends’ Facebook statuses. Lastly, stay out of collections. It stays on your credit report for seven years.