A credit score is intended to be a snapshot or summary of your credit history. It is produced with a computer model created most often by Fair, Isaac & Co. (or FICO) leading to the somewhat generic term “FICO score”.

A low score can mean you won’t get a credit card or loan or that, if you do, you will pay a higher interest rate. Some lenders use what is called risk-based pricing at the point of origination, which means that the lender instantly approves or deniesyour application using your credit score and other information to set the price for your loan.

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Content © Rich Brott, 2011

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