In our modern world, an individual's credit score is an important and critical part of their financial transactions. Credit score affects everything from interest rates on loans, to whether you can even get a loan, to qualifying for apartment rental or leasing a vehicle. FICO, the organization that calculates someone's credit score, reports that over 90% of financial institutions use credit score when making decisions. So, what is a credit score, and how can you check yours?
A credit score is, to put it simply, a three-digit number that measures your “creditworthiness.” Basically, it is a prediction of how likely you are to stop making monthly payments. The higher your credit score, the more low-risk you are considered by businesses, and the more likely you are to get approval for anything that requires your credit score during the decision-making process. The different factors that go into your credit score are payment history, the amount of debt still owed, the length of your credit history, new credit, and types of credits used.
Checking your credit score is not free, however. Federal law says you have the right to a free credit report, but not the ability to check your FICO score, specifically. If you want to check your score, myFICO.com or another trustworthy reporting agency is willing to give you a look at your credit score if you're willing to purchase it.