It’s becoming easier to feel as if your credit score defines who you are.  It’s the number one tool used when a lender is deciding whether or not you should be given credit; but it’s also becoming commonly used by the car insurance companies as a factor in how much you pay for your car insurance premiums, as well as employers during the hiring process.  While the FICO score is extremely important, there is a lot that the score doesn’t actually say about you, including:

  • How much money you make, where you work or how long you’ve worked there
  • How old you are
  • Where you live
  • Your race, religion, sex or national origin
  • Your marital status
  • The interest rates you’re currently paying on any of your accounts
  • How much credit you currently have available to you
  • Whether or not you are in a credit counseling program
  • Child/family support obligation payments

The FICO credit score is used for many things, but it doesn’t quite define who you are.  When employers use the credit score as a determination for hiring, they are also going to need to review other details about you to get a complete picture. 

Lenders start with the credit score, but almost always need further information (including your current employment history, salary, etc) before they can finalize their decision.

This is important to keep in mind because even though the FICO credit score is extremely important – it’s not the magic number that provides all the answers.  If you find yourself with a lower credit score than you’d like, seek credit counseling or debt consolidation services of some kind, since it will help you (and doesn’t get reflected in the score!)