Personal Finance Buzz

There are a number of credit scoring models, as well as various consumer credit reports available. However, many of them have a few things in common, and many credit scoring models are based, in some way, on the FICO score.

For most of these scoring models, it is important to realize that just having someone look at your credit can result in a change to your credit score. However, not every credit inquiry is going to be a negative event. There are two main types of inquiries: hard and soft.

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.

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

We all know that a good credit score can result in a better interest rate on loans but you may be surprised to learn that a bad credit score can affect you in ways you might not have thought about. In addition to paying higher interest rates, a poor credit score can result in higher insurance premiums, denial for employment, or having to pay a security deposit when leasing an apartment or opening a utility account.