Lenders use your FICO score, or credit score, to determine whether to offer you credit. Your FICO score is calculated by applying a mathematical formula to your credit report data. “FICO” is an acronym for the Fair Isaac Corporation, the company that created the FICO score.
Your FICO score is also a big factor in determining your interest rate. Generally, lenders consider people with higher scores to be more desirable borrowers, as they typically are at a lower risk of defaulting on their loans.