A FICO score, a type of credit score developed by the Fair Isaac Corporation, ranges from 300 to 850 and is used by lenders to assess a borrower's creditworthiness, impacting loan eligibility and terms. 

Here's a more detailed breakdown:

What is a FICO Score?

• Credit Score:
  A FICO score is a numerical representation of your creditworthiness, based on the information in your credit report. 

• Purpose:
  Lenders use FICO scores to determine the risk associated with lending money to you, influencing factors like loan eligibility, interest rates, and credit limits. 

• Range:
  FICO scores typically range from 300 to 850. 

• Factors:
  FICO scores are calculated based on five key factors: payment history, amounts owed, length of credit history, new credit, and credit mix. 

• Importance:
  FICO scores are used by 90% of top lenders in the United States to make credit-related decisions. 

FICO Score Ranges and Interpretations:

• Poor: 300-579

• Fair: 580-669

• Good: 670-739

• Very Good: 740-799

• Exceptional: 800-850 

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How to Improve Your FICO Score:

• Pay bills on time: Consistent on-time payments are crucial for improving your credit score. 

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• Reduce debt: Lowering your outstanding balances can positively impact your score. 

• Maintain a good credit mix: Having a mix of different types of credit (e.g., credit cards, loans) can be beneficial. 

• Avoid opening too many new credit accounts: Opening too many accounts at once can negatively affect your score. 

• Check your credit report regularly: Review your credit report for any errors or inaccuracies and dispute them if necessary.