What is a Credit Score?
A credit score is the result of a mathematical equation that evaluates many types of information that are on your credit report. Potential lenders will usually review your credit report and credit score, along with other factors, such as your ability and likelihood to repay debt.
Credit scores are often called "FICO scores" because most credit scores are produced from software based on a model developed by Fair Isaac and Company ("FICO"). For more information about FICO scores, go to www.annualcreditreport.com.
The FICO score generally ranges from 300 to 850, and a higher score indicates a lower credit risk. FICO scores are calculated from many sources information in your credit report, which is based on the importance of the following five categories for the general population:
What Can Affect My Score?
Your FICO score is a "snapshot" of your credit history at a given point in time, and can change based on the factors that make up your credit score.
How To Improve Your Credit Score
Your score can improve by managing your credit responsibly over time and following some basic tips: