When you are making life plans such as buying a home, getting a car loan or anything that you need a loan for then you need to be in the know about your credit score AND specifically your FICO credit scores. I know many of you have heard of a credit score and how important that is when it comes to things like mortgages but I am sure there are many like myself who did not know the importance of my FICO® Score until it came time to buy our house. I have partnered with MyFico to help you be informed so you are not lost when the time comes to get started with your life plans of buying a home, a car ect.
When we were talking about buying a home Tom and I focused on our credit scores – which we had been on top of for years due to learning early on about some of his family members who used his name to open credit cards and who put medical bills of theirs in his name as well. While this won’t happen to most people, him having the same name that is off by just the middle name caused us a bunch of mess that we had to figure out.
I was in the dark on what a FICO® Score was originally and I am sure many of you are like I was wondering what it is exactly. In short, FICO® Scores are the most commonly used credit scores. FICO® Scores are generated by a scientific algorithm designed to evaluate a person’s credit risk to a lender. The algorithm is periodically updated to reflect changes in consumer behavioral trends, resulting in multiple FICO® Score versions. Your FICO® Score is the one that creditors look at, it is the one that makes the choice on if they are going to trust you or not when getting a loan.
Ok so now that I have rambled a bit here I am going to break it down for you so when you are going to get your house or car you are in the know about FICO!
- FICO® Scores are the most widely used credit scores—according to a May 2015 CEB TowerGroup analyst report, FICO®Scores are used in over 90% of U.S. lending decisions.
- Lenders use FICO® Scores to get a fast, objective and reliable measure of credit risk, which makes the lending process faster and fairer for people.
- You have more than one FICO Score. Different lenders use different versions of FICO® Scores when evaluating your credit. Auto lenders, for instance, often use FICO®Auto Scores, an industry-specific FICO® Score version that’s been tailored to their needs.
- Non-FICO scores use different scoring formulas, have widely varying score ranges and are seldom used in lending decisions, they may not give you an accurate measure of your credit risk compared to how a lender will see you.
After using Myfico I have come to love some of the options they have to help you as well. You can track changes to your FICO® Score, and they even give you access to a FICO Score Simulator where you can simulate how paying down a credit card balance might impact a FICO Score.
Plus the system gives you alerts when something that will affect your score happens! That makes it really easy to keep an eye on things!
You can head on over here and get ALL of your credit scores in one place including your FICO Score so you can be in the know about what is important when it comes to your credit and FICO Score!
Please note that a commercial relationship exists between our site and FICO that may include FICO providing us with product and other forms of payment. The views of the author(s) herein do not necessarily reflect the views of FICO. FICO is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act, and does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” credit records, credit history or credit ratings.
Jeanette says
I learned really early what a FICO score is. We had lot of money trouble before and then I learned all about this and how important it is.
Annemarie LeBlanc says
Thanks for letting me know about this. I had no idea of FICO scores until now. Although I do make sure I have good credit standing, it would still be awesome to know how my credit score stands using this system.
Terri Beavers says
I’ve learned something new about my credit score. I wasn’t aware of FICO Scores and that we can have more than one.. Very informative and helpful.
Stacie @ Divine Lifestyle says
It is absolutely vital to know what a FICO score is and how to keep it high. It affects everything.
Vera Sweeney says
Great explanation of what a fico score is!!! It is so important to be on top of what your score is for so many different financial reasons
Heather Lawrence says
I don’t know if this is something that Canadian banks use but I have heard the term numerous times while listening to the Dave Ramsey show. Thanks for making it a little clearer for me!
Eloise says
it’s important to keep track of your Fico score, excellent credit can get you lots, while bad scores can hinder you from getting anything valuable!
Christy Maurer says
I haven’t checked my score in a while. I know it is so important! I’ll have to keep up with it better.
Maggie branch says
Credit is one of those things I wish I had been taught about sooner. Being responsible sometimes doesn’t cut it. My husband are now learning about all of this important stuff and I appreciate you sharing his resource.
Kathy says
I never really knew much about Fico scores, so this taught me a lot. Thanks for all the great information. This was very helpful. I think it’s great to be able to know more about this. I check my score recently and so far it’s pretty good.
Kelly Hutchinson says
Credit can be a hard thing to grasp. Thanks so much for all of the great info! More people need to be aware.
Stephanie Pass says
We have some free alerts with one of our cards, so it’s great to know when my FICO score goes up. Unfortunately, it’s something we all have to keep an eye on.
Miles L. says
I strive to have a good credit standing. I should know more about the FICO score and how it helps.
Rebecca Swenor says
It is so important to check on your FICO score because they can be a mistake that will cost you in the end. Myfico is something I am going to have to check out for sure and show my sons as well. Thanks for sharing the important information about the FICO scores.
Kristen Dann says
I just recently learned about FICO scores and how important they are. I had no idea there were so many different scores.
ricci says
It’s important to learn about FICO scores and know what your credit report looks like. It’s always important to stay on top of these things!!
brianna says
FICO scores are certainly important for the use of credit. We don’t typically use credit to purchase things, but someday would like to buy a house so we try to watch the FICO score.
Jamie says
FICO scores are tricky little buggers. You did a great job explaining it.
Bonnie @wemake7 says
Thanks for sharing this great information. Not everyone knows about Fico scores and its really great to know about them.
Claudia Krusch says
I’ve learned something new about my credit score. Great information! Thank you for sharing it!
Peachy @ The Peach Kitchen says
It’s my first time to hear about FICO scores. It’s really important to know one’s credit score.
Lynndee says
Hubby and I were just checking and talking about our FICO scores. We always make sure to know what our scores are.
Melisa says
What a great description for anyone who doesn’t know what FICO is!
HilLesha says
This is my first time hearing about what a FICO score is, but I do check my credit score every now and then. Thanks for sharing this information! I found it very insightful.
Katherine G says
This is great information. I’ve always wondered how FICO scores work. Now I know. Thank you so much for sharing this information.
Angela Bethea says
Oh my gosh this reminds me of my days back in the bank as a teller then as an admin officer in the loans dept. Thank you for sharing and will come very helpful to many.