Credit Scores

What is your credit score? To help you better understand credit and your credit score, we’re hosting a four part, blog series.

Part two: Credit Scores

You’ve probably heard about the importance of finding out your credit score, but rarely do you get an explanation of what that number means.

As companies you deal with report to credit bureaus, each rating agency uses the information to compute a three-digit score. This score falls between 300 and 850 and is an estimate of how likely you are to repay debts. The higher the score, the lower the risk you pose. Your score is based on factors including payment history, how much you owe, how much of your available credit you use and whether you’ve defaulted on a loan.

(Roberta Pescow, NerdWallet)