FICO Score Chart

A FICO score is a number between 300 and 850 which is used to measure the likelihood that you will repay a debt. It takes into account several factors such as your repayment history, credit length and the types of credit you've used.

It's primarily used whenever a borrower applies for new credit, although it has started to be used in other areas as well. For example the US army requires you to have an excellent credit score (720+) to apply for any positions which require security clearance.

This is presumably so that people who are desperate for money do not join the army to sell state owned secrets.

Other employers are also using it as it's seen as a good measure of a persons responsibility and maturity. Somebody who cannot budget or meet targets in their personal life is also unlikely to be able to do this in a business setting as well.

These scores have even started to be used when people apply for housing as home owners do not want to deal with people that have financial issues - especially people that struggle to pay their bills online.

FICO Score Charts are most commonly used to present information on peoples delinquency rates or the extra interest rates individuals with low scores will have to pay. For example a person with a score of under 500 is likely going to have to pay additional 5% than somebody with a score of 720+.

This is because there is a strong tie between a persons score and the likelihood that they will default on their loan. For example those with a score under 500 have delinquency rates of 87% whilst those with scores of 720+ have a delinquency rate of only 1%.

Because FICO scores are so important, especially when seeking finance it's important you know what yours is. Unfortunately the credit bureaus do not give this information away for free, but there are a number of ways to get a free FICO score.

Even if you're not currently looking for finance, it's still important to keep an eye on your FICO score as if you have a poor score it will take some time to try and improve it.