Why Knowing Your FICO Score Is So Important

The speaker discusses how your credit score can help you get through the credit crunch.  He mentions that lenders will look at three major factors before extending credit to borrowers:  collateral that is put down, capacity to repay debt, and your FICO score. 

He demystifies some common myths on credit scoring.  For example, 70% of people believed that credit score was impacted by income level.  40% of people believe that age affects your credit score.

The FICO score is a rating scale between 300 and 850 and is a major tool used by lenders to assess the risk of the borrower.  FICO scores are derived from data within the credit reports from the three major credit reporting bureaus.  He suggests that one of the major components of your FICO score is consistent on time bill payments.