FICO Score is a term used to describe the number assigned to you in relation to your credit. It is simply a number used to represent your financial obligations in relation to your credit history. It is called FICO because this score is determined by software created by Fair Isaac and Company.

Building and maintaining good credit is more important today than ever. Whether we realize it or not, so many parts of our daily financial lives revolve around our credit scores. But don’t fret — abide by these five must know credit tips for students and you shouldn’t have any problems at all.

All Credit Reports are Not Created Equal — This means that your interest rate is somewhat dependent on whichever credit report your lender uses. This may not sound significant but a few points could mean the difference between being classified from the no credit risk category to the some Credit Risk category or even the default credit risk category. This could mean having several percentage points added to your loan.

Your credit score is used by lenders to determine if you can get a mortgage loan and what interest rate they will charge you.  It is also used to obtain a car loan, cell phone contract –- even employers and landlords check it!  This is a precious 3 digit number you should try your best to protect.

If you don’t have an established credit history, or if you do have an established credit history but it has some dings, you may need a co-signer to get approved for a loan or credit card. By co-signing a credit application, the co-signer is agreeing to assume responsibility for the debt should you, the primary borrower, default on your agreement to pay the debt.