In the process of discussing estate planning with many folks, I inevitably run into some sort or form of financial planning. A huge part of having enough to pass onto the next generation is being wise with your money and knowing how credit works. Almost all credit issued in the United States is based on the FICO score or a variant of it. Your FICO score or credit score is a score compounded by the 3 major credit bureaus (Experian, Equifax and TransUnion) and is used to determine the interest rate from a home mortgage to a car loan. A good FICO score is also crucial to getting an apartment or finding a job nowadays as many landlords and employers are checking an applicant’s credit score and equating it to that person’s trustworthiness.
myFico, the official site of the Fair Isaac Company has an article detailing what goes into generating a FICO score. Knowing what contributes to your credit score will ultimately help you to improve your score as you will know what needs to be worked on in your financial life.
