FICO in simple words means your credit worthiness which means when you apply for a loan it becomes criteria to get you the loan. In countries like United States this is one of the factors which gets you credit for anything, In India it’s called CIBIL score.
If you had paid your loans in time and there is no delayed payment then you should not be worried much about FICO Score but if you still want to find out, BankRate FICO estimator is a good place to start with. The only tool which I found was free to use.
FICO basically takes a lot of factors like Payment History, Credit Utilization, Time Period, Types of Credits used etc. This is one way banks can find, what is the chance that the loan will be paid back in time if given to you. Here is an example
The higher your FICO® scores, you the less you pay to buy on credit – no matter whether you’re getting a home loan, cell phone, a car loan, or signing up for credit cards.
For example, on a $150,000 30-year, fixed-rate mortgage using today’s national rates, a person with FICO® scores of 760 or better will pay $-727 less per month for a $150,000 30-year, fixed-rate mortgage than a person with FICO® scores below 620 – that’s a savings of $-8,724 a year. You can see how essential it is to get your scores in the higher ranges if they are low, and also how important it is to keep them high if they are good.
Your FICO® Score Your interest rate Your monthly payment 760 – 850 4.13% $727 700 – 759 4.35% $747 680 – 699 4.53% $763 660 – 679 4.74% $782 640 – 659 5.17% $821 620 – 639 5.72% $872 Actual Rates – Updated Daily
