Your credit score, a number ranging anywhere from 300 to 850, represents your perceived credit status. Calculated by proprietary formulas (the most popular being FICO and Vantage), your credit score shows a lender how likely you may be to pay back your loan. This is what banks, private lenders, and insurance companies often use to determine interest rates, payment terms, and the amount you can borrow.
Poor
300-599
Fair
600-659
Good
660-719
Very Good
720-779
Excellent
780-850
Your credit score is based on your financial history, including any late payments, age of credit accounts, past due accounts, the number of loans outstanding, and other similar factors. The higher your credit score is, the more trustworthy you look. Other entities, such as your landlord, utility companies, employers, and even the government, might use it to decide whether to enter an agreement with you.
Securely access your free credit report from Experian, one of the “big three” national credit bureaus. Your personal information will be protected and remain private at all times.
As you browse the report, you will see a breakdown of the factors that influence your score. Not every factor used to calculate your credit score weighs the same. Some are more impactful than others. ThinkWallet can help you learn the ropes of your financial well-being so you can make better decisions.
Contrary to popular belief, checking your credit score frequently does not negatively affect it. Quite the opposite, in fact, monitoring your credit score can help you learn how to improve it, as well as alert you of possible financial frauds or identity thefts you may be a victim of.
Monitoring your credit score is the first step toward rebuilding it. A few other ways to improve your score include:
Improving your credit score may take months, but learning where you stand is the first step in that direction. Start today. Sign up for a free account and review your current credit status.