Importance of a Good Credit Score

Having a good credit score is the result of good financial management and responsible spending. Good credit allows access to resources that would not otherwise be available. Learn the importance of a good credit score and how to get on the road to financial freedom.

FICO

Fair Isaac Company, also known as FICO, is responsible for the development of the credit score formula. Today, the same company determines and reports credit scores to consumers and creditors.

Good Score

The standard for a good FICO score varies by creditor. However, according to MyFICO.com, in some instance scores over 680 can reap the financial benefits of lower interest rates and the ability to acquire better creditors.

Added Benefits

A good credit score makes it easier to increase the amount of credit available for large items such as a home, investment real estate or business loan.

Employment

In some instances, maintaining a good credit score can aid in acquiring a job as some prospective employers now review credit scores before offering employment.

Monitoring

Credit scores can be monitored through the My FICO website. Equifax, TransUnion and Experian offer services that allow consumers to receive their credit score for a fee.

References

• FICO Credit Scoring
• FTC Credit Score Information