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Here's what your credit score means and how it impacts you

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Your FICO score: The three-digit number explained

In the U.S., there is a three-digit number that helps determine how much you pay for credit and that can affect virtually all expenses in your life. It's called a credit score. Your score can increase and decrease, but what does it mean and how does it impact you?

Many U.S. lenders use one type of credit score called the "FICO score." FICO — or Fair Isaac Corp. — was the first company to translate all of a person's credit history into a single three-digit number that predicts how likely they are to default on their bills.

The number helps lenders decide how much of a credit risk you are. Watch this video to find out more about your FICO score.

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