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The FICO score is the most widely used credit score. It's calculated using information found in your credit history. Your credit score influences lenders' decisions about loan applications and can also affect job applications.
Credit History
Your credit history contains information about your lines of credit--such as credit cards, mortgages and other loans--applications for new credit and any public records relating to debt, such as foreclosures and bankruptcies.
FICO Score
The FICO score uses an algorithm created by the Fair Isaac Corporation. It takes the information in your credit history and generates a numerical score.
Score Ranges
The FICO score ranges from 300 to 850, with higher credit scores meaning you are a lower credit risk.
Significance
Lenders use credit scores to determine whether to approve you for a loan or credit card and what interest rate to charge.
Misconceptions
Your personal information--such as your age, gender, location and employment--is not included your FICO score. However, some lenders may use your personal employment information in determining whether to issue you a loan.
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