| Your credit score is a grade that shows your | | | | score of an individual, top among them the Fair Isaac |
| potentiality of getting a loan. Lending institutions rely on | | | | Corporation (FICA) score. The FICA score, which |
| your credit score to know whether you'll be able to | | | | range from 300-850, is very popular among mortgage |
| pay back a loan on time. The score helps the institution | | | | lenders who use it to find out which borrowers are |
| calculate the rate of risk hence be able to determine | | | | probable to default mortgage payments. |
| the right approach. The score can be obtained from | | | | Initially, credit scores were only accessible to financial |
| credit reference agencies like TransUnion and Equifax | | | | institutions, but today the score are being |
| or/and from credit bureaus. | | | | commercialized. By paying a fee of $12.95, one can be |
| Still on point, a credit score will determine the rate of | | | | able to determine the FICA credit score of an individual |
| interest and the general re-payment terms of a loan | | | | on the Equifax website. Experian and TransUnion on |
| borrower. This is to say that someone with a high | | | | the other hand are also offering the same service, but |
| credit score will have an extended repayment time | | | | their own credit scores and not FICA score. Experian |
| and a low rate of interest and vice versa for a poor | | | | charges $12.95 and TransUnion charges $9.00, for |
| credit score. This is so because poor credit score | | | | credit reports that indicate credit scores, that the two |
| poses a threat to the lending institutions, hence they | | | | companies promise equal that of FICA. The scores |
| put a high interest rate in order to recover their money | | | | can be also be obtained through regular mail, on phone |
| in the shortest possible time. | | | | or online. |
| Due to the crucial information provided by a credit | | | | Some individuals however do not see the need to |
| score, other institutions such as insurance companies, | | | | purchase a credit score as they can get it for free |
| phone companies, and other private institutions are also | | | | from the three main agencies. Further, other states |
| finding the credit score a very important tool to | | | | issue free credit reports in the course of the first 30 |
| determine the background of their potential clients and | | | | days when an individual is rejected by a lending |
| employees. | | | | institution, or when one gets poor credit terms due to |
| There are so many ways to determine the credit | | | | their credit score. |