What is credit score?
Credit scoring was started by the Fair Isaac Corporation (FICO). A FICO credit score is composed of three digits uniquely assigned to each person who has had a credit transaction. The credit score is based on the credit history which includes the track of financial obligations and payments made. Any creditor can use the credit score to determine the credit risk (the likelihood that the credit can be paid in full and on time). Defaults in paying previous credit can have an adverse effect on the credit score. A low credit score means a higher credit risk for the creditor.