What is a credit score?

Your credit score is a measure of your credit risk. In other words, lenders need to know how safe it is to lend you money...will you pay them back? The most common credit score is the FICO credit score, named after it's inventors.

What is the formula for the FICO credit score?

The exact formula is guarded by the company itself, but it is based on the following factors:

What is a good credit score?

The FICO score ranges from 300 to 850 and the higher the better. Those with the highest credit scores can receive the best interest rates and deals on mortgages, car loans and other types of loans. A score of 720 or higher is considered good, while a score of 650 or lower could be troublesome.

A lower credit score may mean that you have to pay a higher interest rate on your loans, or if it's too low, it could mean that you are unable to secure a loan at all!

How can I find out my FICO Credit Score?


You can learn your credit score by ordering a report from any one of the three credit bureaus:
You are entitled to one free credit report per year which contains your credit history including your credit history (loans and credit card accounts), but may not actually include your FICO score. Since the FICO score is a proprietary formula, there is usually a charge for obtaining your FICO score.

Can I get a report from all three credit bureaus at once?

Yes, You can order a 3-in-1 report like Experian Triple Advantage. Your credit report contains the same information that lenders see when deciding whether or not to loan you money. Reviewing your credit report allows you to look for errors that may affect your credit, signs of identity theft, and it arms you with the information you need to negotiate for better credit terms with your own lender. 1