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   Credit scores are mathematical models that aim to help lenders manage
   the risk that borrowers will default. Until June 2000,  ADVERTISEMENT
   the computation of one of the leading credit scores    [Image] [Image]
   (the "FICO" score you may have heard your banker or
   mortgage broker mention) was a mystery.

   Not anymore. According to the Fair-Isaacs Company, about 35% of your
   FICO score is determined by your track record in repaying, on time, the
   debt that you've taken on. But most credit records show no late payments
   at all, so it's easy to see why other factors, like how much total debt
   you have, are almost as important (total debt outstanding is about 30%
   of your FICO score).

   Tip: understanding, and managing, your credit score is an essential part
   of handling your personal finances. A good first step is to get your
   credit report online -- it takes just seconds. You'll be looking at the
   same information used by lenders to determine what terms to give you.
   For example, for some lenders, a credit score below 620 may bump up the
   interest rate you'll be faced with on a potential mortgage loan.

   More about credit scores:
   • How to interpret credit scores
   • More factors that influence your credit score
   • How to improve your credit score

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