Understanding Your Fair Isaac Credit Score – Also Known As Your FICO Score
A lot of people are wondering if Fair Isaac is a person or some kind of a name that has something to do with the financial lifestyle of a person. Actually, Fair Isaac is a name of the man who is responsible for the method of calculating scores that are equal to the financial lifestyle and activities of consumers. This kind of method is patented way back in the 1950s and still used today to determine the people who are worthy for a credit loan.
Fair Isaac credit score or FICO is a numeric measure of how financially trustworthy a person is. This score determines more than what you think. Maybe, you already heard that FICO score is the one that will determine if you can obtain a home loan from a bank. However, did you also know that Fair Isaac credit score also plays a very important live score part in determining your interest rates on your credit cards? Aside from this, it also plays a vital role in the price of your auto insurance.
If you already know these facts, then do you know that your FICO score can also determine your employment? Basically, it is one of the most important things that you must know about FICO score. If you are currently applying for a new job, the company that you are applying for will most likely check your financial lifestyle and one way of doing this is by checking your FICO score. Most of the time, your FICO score is checked especially if you will be applying for a job where finances of the company are involved. These companies will really want to hire a person that knows how to handle money well so if you have a low credit score, then you have a very low chance of obtaining the job.
The Fair Isaac credit score ranges from 300 to 850. Basically, this score measures your statistical probability of being late in paying your bills. Most of the people have a score between 600 and 700 and only 11 percent of the total population has a score of 800 above.
These scores can also affect the loan rates that you can obtain. If you have a credit score of 560 or below, then you must expect a higher interest rate which is between 4.3 percent and 5 percent. If you have a higher FICO score then you can have a lesser interest rate.