CREDIT SCORE VS FICO SCORE
WHAT IS A CREDIT SCORE?
A credit score is a (3) three-digit numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual (how likely an individual is to repay a debt). A credit score is primarily based on a credit report and information is typically sourced from the (3) three major, credit bureaus:
Bankers and lenders use it to decide whether they'll approve an indivdual for a credit card or loan.
WHAT IS A FICO SCORE?
A FICO score is a (3) three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay a loan. Your FICO score affects how much you can borrow, how many months you have to repay, and how much it will cost (the interest rate).
When you apply for credit, lenders need a fast and consistent way to decide whether or not to loan you money. In most cases, they'll look at your FICO scores. You can think of a FICO score as a summary of your credit report. It measures how long you've had credit, how much credit you have, how much of your available credit is being used and if you've paid on time.
Not only does a FICO score help lenders make smarter, quicker decisions about who they loan money to, it also helps you, (the consumer) get fair and fast access to credit when you need it.
Since FICO scores are calculated based on your credit information, you have the ability to influence your score by paying bills on time, not carrying too much debt and making smart credit decisions.
Your FICO score is broken down and calculated into 5 sections:
Payment History (35%)
Credit Utilization (30%)
Average Age of Credit History (15%)
Credit Mix (10%)
Hard Inquiries (10%)