A FICO credit score is the complex calculation of all of your past financial activities into a numerical score between 300 and 850, 300 being the worst and 850 being the best. Your FICO score is used by financial institutions to determine whether you are suitable for a loan or other credit related service.

It is very important for you to understand how your FICO score impacts your financial opportunities and, as a result, your life. Your FICO score is based on your credit report. A credit report is a history of all previous financial activities, credit cards, utility bills, mortgages, and your payment history. A better credit history results in a higher FICO credit score. Banks and other lenders use this score to evaluate your likelihood of making future payments on time, thus reducing their risk.

FICO scores range between 300 and 850, and can be grouped as such:

700 – 850 — Excellent or Very Good Credit

680 – 699 — Good Credit

620 – 679 — Okay or Average Credit

580 – 619 — Low Credit

500 – 580 — Poor Credit

300 – 499 — Bad Credit

Your FICO Score is a very important number when it comes to your finances, it shows lenders your reputation and tells them how much trust they should bestow in you. The higher your credit score, the more you will be able to pick and choose the terms of your loan, including lower interest rates. Make monitoring your FICO credit score and credit report part of your yearly financial routine. If you let your credit get away from you it could take years or mind numbing frustration to get it back into a desirable range.

How Do I Check My FICO Score and Credit Report?

By: Zach Ford

About the Author:

Kristy R asked:


I’ve heard bad stuff goes off your credit report after 7 years, so can you wait it out and have decent credit again after 7 years? Anyone know how that works or what to do to fix it?

Chippewa asked:


When I was in college I kind of got some bad credit. Now I’m looking to raise my credit score. I have three credit cards and am always paying the bills on-time. Is there anything else I can do to raise my score?

saylasmommy asked:


What is teh best credit card to get to help fix credit? My Credit score is not good…Like a 550…I Need to get a credit card but no one will approve me! Help!

7steps2720 asked:

Your credit score is your financial life! Do you feel that that bad credit is ruining your life? Are you exasperated with your lackluster credit score? If so, its time to take credit matters into your own hands. Becoming credit-wise is as simple as knowing the facts about credit and how it affects the way you live. Philip X. Tirone shares some tips on how changing your credit score can change your life. For more information on Philiip’s 7 Steps to a 720 Score Credit Management System – visit …

scrobrey asked:


Will bad credit disqualify you or be a factor in obtaining a life insurance agent position?

Nicholas G asked:


I’ve read that disputing anything that is bad on ones credit report, even if it is accurate, will most likely be removed. Is this true? How does disputing work?

Master Shake asked:


My credit is around 570. I would like to increase it, but I was wondering what the cut off between “bad” & “not so bad, sorta fair” credit was, as I am planning on applying for a card to increase my score RESPONSIBLY. After paying off all of my debt ( which made me feel GREAT!!!), I need to rebuild my credit.

Suggestions?

A.D asked:


What kind of problem you get if u have ruined your credit record or you have bad record or you have a debt in the US?I would like to know if for example landlords or employers check your credit before signing a contract?

Moris asked:


When I go shopping, the store asks me if I want to save xx% off my purchase by signing up for a credit card. How bad will it affect my credit score if I sign up to get the discount. Pay it all off right away and canceling right after that? My first credit card received was in 2001 and I never plan on cancelling it.
How bad would it affect my credit score if I do it often?