A Beginner’s Guide to Your FICO Score

iQuanti: Like it or not, the financial world judges you based on your credit score. Your FICO credit score is a number (ranging between 300 and 850) that represents your creditworthiness, or how likely you’ll be able to repay the lender. Read on to learn what a FICO score is, what factors can influence it, and how you can improve yours.
How your FICO score works
A FICO score is the credit rating determined by the Fair Isaac Corporation, a data analytics company that originally developed credit scores. FICO uses credit history reported to the major credit bureaus (Experian, Equifax, and TransUnion) to determine how reliable of a borrower you’ll be. 
You may be wondering if there’s a difference between a FICO score vs. credit score. Your FICO score is a specific type of credit score. It’s the most widely recognized and used by many lenders in their application decisions.
However, FICO is not the only type of credit score. Competitors such as VantageScore can also be used to determine your creditworthiness. When checking your credit score, it’s important to know whether the number being reported is your FICO score, VantageScore, or some other variation.
What factors affect my FICO score?
FICO’s website makes it clear what data from your credit history is used when calculating your credit rating. This can be summarized into five major categories:
How to improve your FICO score
Raising your credit score is rooted in practicing good, responsible financial habits. Here are a few tips you could use to increase yours.
The bottom line
FICO scores are the most recognized and widely used type of credit score. They’re calculated by taking input from your credit history and using it to determine your creditworthiness. You can improve your credit score by practicing good financial habits, such as paying your bills on time and using your credit lines moderately.
Source: iQuanti