A FICO Score is a number with three digits that comes from the information that is on people’s credit reports. The FICO Score is important because it shows lenders the likelihood of a person repaying a loan while also showing borrowers how much they can borrow, how long they have to repay a loan and the interest rate for the loan. The information from a person’s FICO score also gives lenders the fastest and most consistent way to determine if borrowers are worthy of receiving the money. It ensures that everything is fair for both the lenders and the borrowers. 

People in need of money can rest assured knowing that as long as they pay their bills and try their best to make smart decisions in regard to their credit, they can fairly get access to that money they need because of their FICO score. FICO stands for the Fair Isaac Corporation, and it is important because before it existed, the way lenders determined the creditworthiness of consumers was very different and sometimes included the gender and political affiliation of borrowers. 

It is very helpful for people to have a good FICO Score in case they find themselves in need of a loan because the higher a person’s score is, the less they will have to pay in interest and fees. This is because lenders will propose lower rates for borrowers that seem more likely to pay back the loan, and this could ultimately save consumers thousands of dollars in the long run of paying back the loan. Ninety percent of lenders use FICO Scores to decide if a consumer should receive a loan, with each different lender deciding what they consider to be a good FICO score. This means that someone could be denied a loan or receive high-interest rates from one lender and then apply for credit somewhere else and receive a loan with low interest and fees. 

However, there are FICO score ranges that most lenders generally use to determine the creditworthiness of borrowers and these ranges help borrowers determine when they should apply. Usually, the higher a person’s FICO score, the better their chances of getting a loan with good interest rates, and in most cases, a score of 670 or higher offers the best chances for consumers in need to receive a loan.