So, what is a FICO Score? It’s a number that is formulated based on your credit history helping lenders evaluate your credit risk. Your FICO Score is used to determine credit offers and interest rates — and now it’s free for you to view.

A credit bureau is an information clearinghouse that compiles information on consumers. The credit grantors, or lenders, report consumer payment history to the credit bureaus. The credit bureaus then compile that information together with information on tax liens, bankruptcies, and court judgments that is available in public records. In return, when consumers apply for credit, lenders can check credit reports to determine the creditworthiness of consumers.

Anyone who has recently applied for a mortgage knows that lenders are already looking much more closely at your financial affairs. But soon, they’ll be able to easily delve into the deepest recesses of your financial life, accessing information that never before appeared on your credit report.

Just face it, if you are a spendthrift and your credit record is poor or you have missed payments and you have also filled in a lot of loan applications — you are no different from a lot of other people.

Your credit score can have a major impact on your life. Not only do creditors typically check your score when deciding whether or not to approve your application and what interest rate to charge you if you are approved, but landlords, insurance companies, and even employers often check it as well.