This is a rating that is given to you from lending agencies. This number generally ranges from 300 to 850. Based on your number, lending agencies decide how likely you are to pay back your loan with the higher the score meaning you are more likely to pay them back.

This score can influence rates you get on loans and sometimes what loans you can qualify for. You can have more than one FICO score as each of the major credit bureaus, Experian, TransUnion, and Equifax, have a score for you based on their data.

The FICO score lenders receive can also depend on what type of loan you are applying for. Short term lenders in the automotive business will look for auto specific scores so they number they find will be different than the number a credit card company will get. If you pay your bills on time you can watch your FICO score go up on myFICO.com.

Fun Fact: FICO stands for Fair Isaac Corporation, which was the first company to offer a score based on credibility to pay back a loan.

Find out how this score is calculated here.

By: Spencer Abeyta