Cassandra Hubbart/AOL The almighty FICO score has a big impact on how we make financial decisions, and for good reason. Not only is the score used in more than 90 percent of all lending decisions, but it also impacts other parts of our life, including how much we pay for auto insurance. Some people like to pretend that FICO does not exist. If you are incredibly wealthy (and have, for example, your own radio show and millions in the bank), than you can safely ignore your FICO. However, if you need to borrow money to buy a home or a car, than having a good FICO is helpful. And, fortunately, it is not hard to do. If you pay on time and don't max out your credit cards, than you will have a good score. Contrary to many rumors, you do not need to carry a balance and pay interest on your debt to have a good credit score. You need to use your credit cards, but you can pay them in full every month. If someone tells you that you need to borrow money to have a good score, they don't understand how the calculations work. How Your FICO Score Is Calculated
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