A FICO score is a numerical representation of a consumer’s creditworthiness, calculated based on their credit history and other factors. It is primarily used by lenders to assess the risk of lending money to an individual and determine the interest rate and loan terms. A higher FICO score generally indicates a lower risk to lenders, resulting in better loan terms and lower interest rates.
Checking your FICO score regularly is important for several reasons. Firstly, it allows you to monitor your credit health and identify any potential issues that could affect your score. Secondly, knowing your FICO score can help you make informed decisions about your credit and financial management. Thirdly, you can use your FICO score to compare loan offers and choose the one with the most favorable terms.
