You may know that when you apply for a loan from a bank or other financial institutions, there is always a requirement to provide some form of identification. This is to ensure that the person is who they say they are and that the information provided is accurate.

However, you may not know that when you apply for a loan, the information you provide is used to calculate your credit score. This is done using a system called Fair Isaac Corporation (FICO). The FICO system determines a credit score by looking at information about your credit history and credit characteristics. It is used to calculate the interest rate you will be charged and the term you will be granted.