<human>:  How does FICO credit score work and how does it affect me?
<bot>: FICO Credit Score is a score developed by Fair Isaac Corporation (FICO) that measures an individual's perceived credit risk. It is calculated using information from an individual's credit report, including their payment history, amount of outstanding debt, credit utilization and length of credit history. The score ranges between 300 and 850 and is used by financial institutions to assess an individual's creditworthiness. A higher score indicates a lower risk of default, while a lower score indicates a higher risk of default. Having a good FICO Credit Score is important because it can affect your ability to secure credit from lenders, such as a loan or a mortgage. It can also affect things such as loan interest rates and cost of insurance premiums.