| If you've read or heard anything about credit scores, | | | | better your FICO score will be. Your score above 700 |
| you've heard mention of a FICO score but may not | | | | identifies you as an excellent credit risk and qualifies |
| know what it is. The FICO calculates all your financial | | | | you for lower-interest loans as well as access to |
| activities into a score ranging from 300 to 850. The | | | | higher credit limits. You're still considered a good risk if |
| higher your score, the better credit risk you are. The | | | | your score is above 680 but less than 700 but if the |
| FICO is a tool used by lenders to help them decide if | | | | FICO sinks below 580 you're considered a poor credit |
| you're a good credit risk. Anyone who applies for a | | | | risk. |
| loan will likely have their credit checked and their FICO | | | | Your FICO is your credit reputation, just as your family |
| number could make the difference between being | | | | name is your character reputation. It's important to |
| approved for the loan or turned down. | | | | check it at least yearly to be sure that you're not a |
| Your credit report, used to calculate your FICO score, | | | | victim of credit fraud. Your financial reputation is nearly |
| is an accounting of all your financial activity. Returned | | | | as important as your personal reputation in this age of |
| checks (NSF), late payments and loan defaults are all | | | | credit and credit abuse. Perhaps you want to buy your |
| reported by your creditors to the three major credit | | | | first home and have worked hard the past few years |
| history companies. If you pay off a loan early or make | | | | to establish yourself as a good credit risk; without |
| all your payments on time, there's no glowing | | | | regular checks of your credit report, all your |
| recommendation made. A credit report and the | | | | conscientious efforts can be ruined by fraudulent |
| resulting FICO score are merely a dry accounting of | | | | activity of which you were unaware. |
| financial facts. | | | | Like everything else, your credit report and FICO score |
| You can and should receive a free credit report and | | | | needs to be watched. It would be wise to designate a |
| FICO score every year from the three major | | | | certain time of year to request your credit report. By |
| credit-reporting companies. By calling or going online, it's | | | | checking your credit regularly you can maintain your |
| easy to keep an eye out for any erroneous | | | | reputation as a good credit risk, prevent or quickly |
| information or mix-ups on your credit history. | | | | report fraudulent activity and avoid being the victim of |
| The more responsible you've been with credit, the | | | | identity theft. |