First: What is a credit score?
In the U.S, a credit score is a number used to predict the likelihood of you not paying back loans. There are three main credit bureaus in the US A and they are Equifax, TransUnion and Experian; however Fair Isaac Corporation dominates the US credit score business and issues FICO scores ranging from 300 to 850.
The higher your credits score the better; however there is a limit. A score of 650 is always better than a score of 550 and a score of 750 will get you access to lower interest rates than a score of 650. Here is the catch, after a gaining a score of 760 you won't necessarily get lower interest rates than someone with a score of 830. As long as you maintain a score above 750 you will be in great shape.
Please stay tuned for our weekly series on credit cards and FICO. Next week I will post on what your FICO score is, what it means and how it is calculated. Feel free to share with other family and friends!