If you plan to acquire a loan, it is important to know your FICA credit score. Your FICA credit score is a number which is used by loan companies to determine whether you are worthy of receiving credit. The majority of the major loan companies will use this number to decide whether or not to approve your application for credit.
The average FICA credit score is 678. However, it can range widely from 300 to 800. The score itself is calculated using information derived from the loan companies Equifax, TransUnion and Experian. Those who have never acquired credit of any kind are likely to possess a high FICA credit score. This will help you to acquire a loan against advantageous terms. If you possess a number of loans and/or credit cards in your name then your FICA credit score is likely to be low. This will mean that acquiring a loan will be more difficult. In general, a credit score exceeding 500 will mean that your application is likely to be approved.
There is another reason why it is necessary for you to know your credit score. Your FICA credit score report will help to determine the total sum of money that you will be granted and the interest rate incurred. Those in a strong financial position will be likely to get beneficial terms on their loan and they will also be able to borrow greater amounts of money.
If you possess a credit score under 500, it is wise to refrain from applying for new loans before you have resolved the current debts against your name. If you have serious debts held against your name, it is advisable to seek guidance on how to repair your credit rating. Once you are ready to acquire a FICA credit score report, go online and find a loan company who will provide you with your FICA credit score for free.