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Understanding Your Credit Score (FICO)

December 09, 2021

1-Minute Video:

A credit score is a 3-digit number based upon a number of factors from your financial activities. It is used to determine your creditworthiness for a mortgage, auto loan or credit card.

A company called FICO creates what is called a FICO Score. It is based 35% on payment history, 30% on the amount owed, 15% on the length of credit history, 10% on new credit and 10% on types of credit used. The importance of any factor is measured against the others. FICO scores range from 300-850, with 850 being the highest and best score possible. 90 of the top 100 U.S. financial institutions use the FICO score for credit decisions.

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