A credit score otherwise known as the FICO score is one of the most important basic numbers in your financial life. This short guide to the credit score chart was designed to give you an overall bird's eye view of what is contained within that three digit number. That 3 digit number is a numerical expression that is the total statistical analysis and breakdown of an individual's credit files. The FICO credit score is used to represent the credit worthiness of a single person in the world of accounts payable.
Experian TransUnion Equifax
Your credit score is fully-based on the credit report information that it typically found in one of the big three major credit bureaus. The big three that we are referring to are of course: Experian, TransUnion and Equifax. It is important for you to bear in mind that income is not considered by these major credit bureaus when calculating a credit score.
The FICO score is the standard credit score scale which was developed a long time ago and is the acronym for Fair Isaac Corporation. Fair Isaac is a mathematical brain trust that developed the score in an effort to streamline the process of determining credit worthiness in a single glance. We are not here to discuss the fairness of the FICO score only to lay out the details of what the score actually represents. The FICO score classifies an individual's credit risk using a score of between 300 and 850. According to FICO, the average credit score for Americans is about 720 and this is a very good score indeed.
Free Credit Report
Many individuals use some sort of guide to help them understand and better prepare themselves for improving that all-important FICO score. You now have your own cheat sheet into which you can start looking at your credit report through one of the many free credit report sites that are online today. We do hope this straightened out any questions, albeit a general round of questions, that you may have had on the importance of your FICO score.
Grab a Copy of Your Free Credit Report
Your goal now is to grab a copy of your free credit report and by hook or by crook have that score contained within its pages. A great method for looking at the overall industry that means so much to so many people of the world today is the FICO score. You will be able to understand your FICO score better and do not be afraid of that or ashamed of it as if we told you how many people have a near 300 FICO score and even if yours is at for 472 would that make you feel better?
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