Word of the Week:
FICO Credit Score

Definition:  The FICO score is one of the most well-known and widely used credit score models. Banks, lenders, and other companies use this number to determine your responsibility when it comes to borrowing and repaying money. Those with higher scores can usually obtain lower interest rates and more financing options, while those with low scores could have difficulty borrowing money.

Key Takeaway:  Companies rely on your credit score to gauge your responsibility when it comes to borrowing money and repaying debts.

Fun Fact: It’s not called the “Fair Isaac” company to advertise that the scores are fair. It’s because the company founders’ names were William Fair and Earl Isaac. (And “William-Earl Score” is much less catchy.)