What is a FICO score?
The FICO credit score provides a numerical snapshot of someone’s credit at a point in time. It reflects your credit risk level—the higher the number, the lower the predicted risk. Low numbers indicate greater risk. The FICO comes from the most commonly used scoring system, and is a credit bureau risk score generated by information from your credit report only. Credit scores aren’t stored, or part of a credit profile, and may change from lender to lender since calculation factors vary. The score does change every time credit information changes in your credit report and a new or minimal credit history means it may not be possible to calculate a score.
A. The FICO credit score provides a numerical snapshot of someone’s credit at a point in time. It reflects your credit risk level—the higher the number, the lower the predicted risk. Low numbers indicate greater risk. The FICO comes from the most commonly-used scoring system, and is a credit bureau risk score generated by information from your credit report only. Credit scores aren’t stored, or part of a credit profile, and may change from lender to lender since calculation factors vary. The score does change every time credit information changes in your credit report and a new or minimal credit history means it may not be possible to calculate a score.
“I was recently told by a friend that credit scores are important and that my “FICO” score can determine if I get an apartment or not. Is this true? And what determines what my score will be?” – Cayna (Plymouth, MI) Yes, your friend was entirely correct–your credit score is important and it can help determine if you qualify for an apartment or not. We’ll break this topic down and answer some more specifics about FICO scores and how they’re calculated. A FICO score is a credit score that is calculated by various components in your credit report. As you might have read in an article that we wrote a while ago, credit reports are like your report card when it comes to managing your credit. Lenders, such as credit card companies, are the teachers that grade your performance. All of this is put together into a summary that helps future lenders determine how credit-worthy you are. While the credit report might be a summary of all of your credit history, lenders don’t always want to wade thro
