Personal Finance Buzz

Many aspects of finances are widely misunderstood, especially in the greed-filled and deceitful society we live in today. One prominent part of finance in this country, the FICO score, is also one of the most misrepresented. My hope is to help clear up the mystery that is FICO by explaining what it is determined by, what it determines, and why it does not (really) matter.

The FICO score is here to stay, but should you shape your financial behavior according to its principles? Does the score account for your lifestyle? Let's take a look...

Your FICO score plays an integral part in whether you are approved for either a mortgage, credit card and other loans. FICO is the score developed by Fair Isaac which determines the likelihood if the borrower will default on the loan.

If you want to effectively manage your credit score, it helps to know your FICO score. FICO is a measure of your credit habits using a formula from Fair Isaac Corporation. Other entities offer their own versions of a credit scores, including the credit agencies and even your lender.

You have several options on the myFICO site for finding your FICO score online and monitoring your FICO score. myFICO does charge for access to your score but offers a free credit score trial to let you check out their ScoreWatch service.

An article discussing the specific factors that affect your credit rating, your FICO score.