Category:
Financing
A FICO score is a type of credit score that indicates a person’s creditworthiness.
Named after the Fair Isaac Corporation, which created the scoring model, a FICO score ranges from 300 to 850.
Financial institutions use this score to determine the likelihood of a person repaying their debts.
The higher the score, the lower the perceived risk.
It is calculated based on various factors, including payment history, amounts owed, length of credit history, types of credit used, and new credit.
Maintaining a high credit score can help individuals secure loans at competitive interest rates.