A FICO Score is a three-digit metric that highlights an individual’s creditworthiness, derived from payment history, outstanding balances, length of credit history, new credit accounts, and credit mix. Lenders, insurers, or landlords rely on the score to assess default risk, shaping borrowing limits and interest rates. Higher scores generally correspond to responsible credit usage, timely payments, and lower debt levels.

Key Points:

• Ranges: Typically from the mid-300s to around 850, with 700+ often considered good.
• Credit Impact: Late payments or maxed-out cards can lower the score significantly.
• Regular Monitoring: Checking personal reports helps correct errors and detect fraud.
• Comparisons: Other scoring models exist, but FICO remains a widely recognized benchmark.

Maintaining a solid FICO Score fosters smoother loan approvals and favorable terms, illustrating consistent, reliable financial behavior.