In recent years, a simple 3-digit number has become critical to your financial life. This number, known as a credit score, was designed by FICO to predict the possibility that an individual or entity would not be able to repay outstanding debt. Credit scores are handy for lenders, but can have enormous repercussions for your wallet, your future, and your peace of mind.
A credit score is a three-digit number based on a borrower’s bill-paying history, debt profile and statistical information about borrowers that lenders use to determine the likelihood of certain credit behaviors, including whether you will pay on time and in full.
Your credit score or rating is a number between 350 and 850 that summarizes your credit worthiness.
This score is also referred to as a FICO score, because it was developed by Fair Isaac and Company .
The score is based on all the information in your credit report and is a quick rating to sum up your overall credit health.