Definition
A credit score created by the Fair Isaac Corporation that helps lenders assess your credit risk. A higher score generally means better loan terms.
What to consider
- Check your score regularly to track improvements.
- Make on-time payments and keep balances low to boost it.
- A higher score can help you secure better financial deals.
Real world scenarios
- Aimée sets up auto-pay on all her bills to maintain spotless on-time payment history, boosting her FICO score.
- Brandon’s new credit account initially dips his FICO score, but responsible usage helps it rebound to an even higher level.
- Kai’s mortgage approval largely hinges on his robust FICO score, earned through years of disciplined financial habits.
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