Friday, August 26, 2016

The Power of the Almighty FICO Score

A FICO score is an (un)necessary evil according to many.  It determines so many things.  What interest rate you will get on a loan or a credit card.  If your credit limit is raised or lowered.  If you have to pay points on a mortgage.  If you qualify for a refinance.  If you should or should not get a loan you may or may not need.
And it also can determine things like whether you get an apartment or qualify for a lease.  It can also determine whether you get a job.  Sound crazy?  Unfortunately it's true.  Employers, land lords and others all have access to your credit history.  And while they may not see your actual score, there are a lot of other things on that report that they will see and it can be to your benefit or to your detriment.
A FICO score is definitely an (un)necessary evil.  While it may not seem fair, it is beneficial to know that your FICO score is determined 100% by you.  So if you know how to read a credit report and understand how a FICO score is determined then you are way better off then someone who doesn't.  On Monday I am going to go more into detail about how to read a credit report and the 5 factors that make up a FICO score.

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