Q. What Is a FICO Score?
FICO scores were created 30 years ago by the Fair Isaac Corporation (FICO) to provide an industry standard for fair creditworthiness grading to both lenders and consumers. Before the FICO score, there were multiple distinct scores, each with its calculation process, and some even included gender and political affiliation.
Your FICO score, which is a three-digit number, is determined by the information in your credit reports, and it https://paydayloanstennessee.com/ helps lenders figure out how likely you are to repay the loan. This impacts the amount of money you can borrow, how long you have to repay it, and how much it will cost.
When you ask for credit, lenders need a quick and trustworthy means to assess whether or not to lend you money. Almost always, they will look at your FICO ratings, which are determined by how long you have had credit, how much credit you have, how much of your available credit is being used, and if you have made timely payments.