What Your FICO Credit Score Means and How It Determines Risk


In the United States, there is a three-digit number that determines how much you pay for credit that can affect virtually every expense in your life. This is called a credit score. Your score can go up and down, but what does that mean and what impact does it have on you?

Many US lenders use a type of credit score called a “FICO score”. FICO – or Fair Isaac Corp. – was the first company to translate a person’s entire credit history into a single three-digit number that predicts the likelihood of them not paying their bills.

The number helps lenders determine how much credit risk you represent. Watch this video to learn more about your FICO score.

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