A credit score is basically a three-digit number, typically between 300 & 850 that represents a consumers credit risk and/or the likelihood that bills can be paid on time.
Credit scores are calculated using information from your credit reports, including:
• The Amount of Debt Accumulated
• Payment History
• Length of Credit History
Higher scores mean demonstrated responsibility with credit behavior in the past, which might make potential lenders and/or creditors confident when evaluating credit requests.
For reference, here's how credit scores are arrange:
• 300 - 579: Poor
• 580 - 669: Fair
• 670 - 739: Good
• 740 - 799: Very Good
• 800 - 850: Excellent
Credit scores are used by potential lenders and creditors - for example, when applying for a car loan, credit card, and even employment! It's highly advised you do what you can to maintain a credit score above 650 to stay in good standing credit. Those with higher credit scores generally receive more favorable credit terms. This may translate into lower payment and less paid in interest!
