Lenders use FICO® scores to assess the risk of lending money to a particular borrower. Lenders use these scores to compare potential borrowers to new lending opportunities.
FICO® scores, like credit scores, are derived from credit risk modelling. In other words, the lower the score, the less likely it is that a payment issue, default, or late payment will occur. A higher credit score can result in lower interest rate offers during the refinance process.”
The Fair Isaac Corporation provides these scores in brackets like poor (less than 580), fair (580 to 669), good (670 to 739), very good (740 to 799), and exceptional (more than 799). (over 800). Credit limits, bank accounts, and debts all play a role in a person’s credit score.