- Another Perspective on Wealth
- Setting Personal Goals
- Understanding and Managing Credit
- Introduction
- Learn About Credit Bureaus, Credit Reports, and Credit Scores
- Identify Appropriate Uses for Credit Cards and Explain How They Can Help You Achieve Your Financial Goals
- Learn How Credit Cards Work and Describe the Costs Involved
- Learn How to Manage Credit Cards and Open Credit
- Summary
- Assignments
- Conclusions 1: Learning to Give
- Conclusions 2: Decide to Decide
What Is a FICO Score?
The most common type of credit score is the FICO score, which was developed by Fair, Isaac, and Company of San Rafael, California. Fair, Isaac, and Company is not the only credit scoring company, but lending institutions use FICO scores more often than the credit scores provided by other companies. Lenders usually base your interest rate on your FICO score, which can range from 300 to 850. Generally, the higher your FICO score, the lower the interest rate lenders will charge you.
Before 2001, consumers were not allowed to see their credit scores. However, in March 2001, new legislation allowed the public to access their credit information for a price. You can now purchase a copy of your FICO credit score from www.Myfico.com or purchase credit scores from other credit scoring and reporting companies, such as Experian, TransUnion, and Equifax. I generally recommend purchasing a FICO credit score as these are most used in the industry. Please note that promotional codes for MyFICO are generally available on the internet. Getting a copy of your credit report and credit score does not affect your credit score.
