What is a credit score? Is it the same as FICO?
A credit score is a numerical index which represents an estimate of an individual’s financial creditworthiness (e.g., the likelihood that credit users will pay their bills). It is based on a subset of the information in an individual’s credit report. Lenders, such as banks and credit card companies, use credit scores to determine credit limits and interest rates. The best-known credit score in the United States is the FICO score, calculated using mathematical formulae developed by the Fair Isaac Corporation. FICO scores and its variants are designed to measure the risk of default, by taking into account various weighted factors. FICO scores are three- digit numbers ranging from 300-850. An individual has 3 FICO scores, one for each credit bureau – Equifax, Experian, and TransUnion. FICO scores are used under many circumstances including: applying for loans (mortgage, home equity, auto, etc.), opening a credit card, starting cell phone service, or even renting an apartment. For more inf
