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This three-digit number can make or break financial decisions. How is it calculated, and who is looking at your credit score? Unfortunately, this tends to be a question that is often answered when it’s already too late. 

Many creditors and employers, landlords, and even insurance companies use a FICO score with your credit history to determine whether you are worth the risk. Your FICO score is a numeric representation of your creditworthiness and calculated based on your credit reports’ information. 

The FICO score is not the only one out there. The major credit bureaus – Equifax, Experian, and TransUnion – have each developed their credit scores and sell their own scores on their respective websites. However, the FICO score has become an industry standard. (You can order your FICO score by going to 

The FICO score ranges from 300 to 850 – and the higher the score, the better. A score of at least 720 is considered to be in the “very good” category. When you’re in this range, it becomes easier to qualify for credit from creditors and lower interest rates. A higher credit score reads as a lower risk to the creditors. When consumers start dwindling below 720, qualifying for credit becomes harder and interest rates, deposits, and extra fees are almost unavoidable. Insurance companies may be willing to sell you insurance, but you will likely end up paying extra for coverage or end up settling for less coverage than you would prefer.

A low FICO score can even limit those looking to rent a home or apartment. Landlords often will not rent to those with a low FICO score. A low credit score can limit people from qualifying for specific jobs, especially those involving handling money or financial decisions. 

Low credit score? No worries! You can easily increase your FICO or other scores by improving your financial situation.

  • Pay down account balances.
  • Begin paying your bills and debts on time.
  • Build up your savings.
  • Minimize the amount of credit you apply for.
  • Correct problems in your credit history report by disputing errors with Credkred.