A credit score is a number lenders use to help them decide how likely it is that they will be repaid on time if they give a person a loan or a credit card. Your personal credit score is built on your credit history. Your FICO® 8 score ranges from 300 to 850. A decent credit score is essential for your financial well-being because the higher it is, the less of a credit risk you are.
Checking your own credit does not affect your credit score
Your credit scores are determined by formulas that assess your creditworthiness. Lenders evaluate the risk of extending credit to you in part by using credit scores, which measures your credit risk — namely, how likely it is that you'll pay them back and pay on time. Credit scores constantly adjust as the information in your credit report changes. You'll benefit from knowing your credit score and keeping track of changes and setbacks.
There is no fast way to improve a mediocre credit score if it is based on accurate information. Consumers sometimes find inaccurate information reflected in their credit report that could affect their credit score. It is easy to file a dispute with Experian or any other credit reporting agency, but you won't be able to do this unless you have a copy of your credit report.
What is a credit score and how is a credit score calculated?
Credit score models are used to compare the information in your credit history to evaluate your relative risk by balancing the negative and positive factors in your credit report.
How Credit Scores Help You and Actions You can Take
- What Is a Good Credit Score?
For a score between 300-850, a credit score of 700 or above is generally considered good. A score of 800 or above is considered to be excellent. Find out...
- Understanding Credit Scores
Types of Credit Scores A credit score is a number lenders use to help them decide how likely it is that they will be repaid on time if they...
- Bad Credit History and Rating
Your history tells creditors about behaviors that can add up to a "good" or "bad" credit rating. Here are some questions lenders might ask that may help them understand...
- How to Improve Your Credit Score
There are steps you can take to increase your credit score, and the sooner you address certain factors, the faster your credit score will go up.
- My Credit Score
Your credit scores helps lenders decide how likely you are to repay debt.
- What is a Credit Utilization Rate?
Your credit utilization rate, sometimes called your credit utilization ratio, is the amount of revolving credit you're currently using divided by the total amount of revolving credit you have...
- What Affects Your Credit Scores?
Knowing what factors and types of accounts affect your credit score is the first step to improving your credit—which could save you thousands over time.