Rich Mom Answers
Undeniably, you need to know about FICO scores. A FICO score, like a social security number, is a number that, once you get it, follows you for life. If you have never heard of a FICO Score, or don’t know what it is, read below.
What is a FICO Score?
What is a FICO score? A FICO score is a credit score, which is a three digit number that represents your credit standing. It helps lenders decide whether to lend you money. The FICO score is one of several models of a credit score.
What is a Credit Score?
What is a credit score? Based on a credit score, creditors know how well you have paid your bills in the past.
What Does FICO Stand For?
FICO stands for Fair Isaac Corporation, which was founded by Bill Fair and Earl Isaac in 1956. FICO was the first credit score. It was created in 1989. Because of updates, there are multiple versions of FICO scores. The most popular version is FICO version 8.
Do I Have a FICO Score?
Do you have a FICO score? You usually have to have a credit account or loan for at least 6 months to have a FICO score.
How Often Should I Check My Credit Score?
How often should you check your credit score? You should check your credit score each month, if you can get it for free.
Does It Matter Which Credit Score I Check?
Does it matter which credit score I check? Some people will tell you that you can keep track of your credit scores using sources that come from any one of the credit bureaus. I suggest that you pay the most attention to FICO scores.
What Is a Good FICO score?
What is a good FICO score? FICO scores from 670 to 739 are considered “good.”
But I encourage you to be above average in your credit and to shoot for a “very good” score.
What is a “very good” FICO score?
A FICO score of 740 to 799 is considered “very good.” Therefore, this range is considered better than average.
What are the Different Types of Credit Scores?
What are the different types of credit scores? There are three major credit bureaus. There’s the FICO score, which was the first credit score. There are also the VantageScore and the Experian Score, anthere are other scores also.
Which Credit Score Is Most Important?
One question that is often asked is… Which credit score is most important?
In over 90% of lending decisions, FICO scores are used. So, I would argue that FICO scores are the most important.
Are Credit Scores and Credit Reports the Same Thing?
Are credit reports and credit scores the same thing? No. A credit report is a detailed history. A credit score is a three-digit number. (See the question below for more information.)
Are My Credit Scores on My Credit Report?
Are your credit scores on your credit report? No. Credit scores are not on credit reports. Credit scores and credit reports are different. Your credit report is the detailed document showing the history of your credit. First, it shows accounts that you have and have had. Also, it shows the amount of credit that you have, and the amount of that credit that you use. It shows the history of how often you have paid those accounts on time, or have been late. On the other hand, a credit score is a three-digit number. In order to get your credit score, you often have to pay for it. Some credit card companies offer their customers free access to their credit scores.
What is Creditworthiness?
What is creditworthiness? Credit worthiness is the extent to which you are judged to be able to handle more debt. It is a lender’s opinion about whether you would be a good person to lend money. This judgment is based on your history of handling debt (aka your credit history and credit scores.) The more creditworthy you are and the longer that you are creditworthy, the more likely you get better rates on loans and have fewer fees. This saves you money!
Do you want to know more about what I say about credit scores? Check out some of my other bits of financial literacy.
What Are the Benefits of a Good Credit Score?
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Wondering About Rich Mom?
My name is Valerie aka “Rich Mom.” Rich Mom Answers is a segment of Rich Mom that gives short answers to my daughter’s personal finance questions. The goal of Rich Mom Answers is to teach her the vocabulary of financial literacy and to answer as many of the common questions that come up when thinking about personal finances. As a mother with a masters degree and majors in business and economics, I started sharing these bits of financial information in order to encourage my daughter (aka Poor Kid), because I want her to get better with her finances and know how to create her own wealth. I want her to live a different kind of life, where at some point, she will not have to trade her time for money.
What Does Wealth Gives Us?
Wealth gives us choices and freedom. Just as importantly, it allows us to be generous and help others. I want her to know how to kick a**, build wealth, and use her time having a beautiful free and generous life. So, I decided that I wanted to share them with her friends, and you. I’m hoping that your generation can get to the point where you can have the option of trading time for money. But, you need a plan. The intended audience is people ages 30 and under or financial literacy beginners. My goal is to encourage others to take control of their own finances, so that they can make better decisions, move toward financial freedom, and also hopefully have free and beautiful lives.
The information shared here is not intended as financial advice, just entertainment and encouragement.
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Also remember that past performance is not a guarantee of future performance.