FICO is a method used to devise a credit score that is based on risk-based system. It is in very wide use by many different financial institutions. They use this to estimate the possibility of a borrower defaulting on a loan.
Your FICO credit score will have a massive effect on both your ability to get a loan and also on how financially efficient that loan will be.
FICO is not the only method in circulation that can be used to calculate a credit score but it is so widely used that it can certainly considered to be the industry standard.
This is because lenders will use this score to decide the interest rate and terms and conditions under which they will offer you a loan by using this scoring system
Perhaps even more importantly, they use the score to decide whether to give you a loan in the first place. As you can see, having a good credit score is absolutely vital.
The scoring system ranges from 300 to 850. It is generally understood that a median score is 723. A score in that region would definitely get you approved for loans as well as getting you very favorable interest rates and terms and conditions.
If you have damaged your credit in the past then don't worry as there are many thing that you can do to fix it but the very first thing you have to do is get an accurate estimate of your current score in the first place. You can't be sure of the best way to proceed until you have a clear picture of where you are at right now.
If you want to find out more about credit scores and more importantly how to fix them http://www.cleanupcreditreport.net/
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