We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a FICA Score?

By K T Solis
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A FICO score, sometimes erroneously referred to as a FICA score, is a numerical score that determines how likely a consumer will pay his or her bills. The scores are compiled by a company called Fair Isaac & Co., which began developing credit scores in the latter part of the 1950s. Today, lenders and other agencies rely on FICO scores in order to decide if a consumer should be granted a loan.

FICO scores range from 300 to 900. The scores are listed on a credit report that provides details about credit cards and loans that a consumer has had in the past. It takes time to build a strong FICO score, but a good score can swiftly deteriorate if the consumer does not make wise financial choices.

Credit scores are developed by examining several factors. The FICO score takes into account whether the consumer has made any late payments, how long the consumer has lived at a certain address, if the consumer has ever filed for bankruptcy, and the length of the consumer's credit history. It also considers a consumer's employment history.

Three major credit bureaus -- TransUnion, Equifax, and Experian -- report the scores to FICO. Smaller credit bureau companies serve local areas as well. While some lenders use all three credit bureaus to determine creditworthiness, other lenders only use TransUnion.

Consumers can increase their credit scores by paying bills on time and avoiding applying for credit on a regular basis. Frequently applying for credit cards lowers credit scores, negatively affecting a consumer's credit. On the other hand, if a consumer does not have a large amount of credit, it is in his or her best interest to apply for more credit. This is because having insufficient credit can adversely affect a consumer's FICO score. Another way to improve a credit score is to avoid high balances on credit cards.

Low credit scores can make it difficult to rent apartments or receive low-interest rates on a mortgage. They can even influence an employer's decision not to hire a particular job applicant. For this reason, smart consumers order copies of their credit reports from the three credit bureaus in order to check their credit scores and the accuracy of the information listed on the credit report.

Any errors listed on the report should be corrected as quickly as possible. By law, consumers are allowed access to one free credit report every twelve months from the three major credit bureaus. The credit bureau companies can be contacted directly for this information.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
By pankaj58 — On May 17, 2009

Do non US residents have a credit rating?

By pankaj58 — On May 17, 2009

What credit rating system is used in India?

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.