Basically one of the most important numbers you will ever have any say in creating. A credit score helps creditors gauge your credit worthiness. Are you a risk to them (a low score) or are you worthy of giving more credit to (a high score).

Credit scores range from 300 to 850. The higher the score, the lower the risk. There is no single score to be met in order to get credit. Every lender will have their on factors that they will use to determine whether you will get credit through them and what your interest rate will be if you to.

FICO (Fair Isaac Corporation) is the most widely used scoring by lenders.

  • FICO®Scores are calculated from many different pieces of credit data in your credit report. This data is grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining how your FICO Scores are calculated.
  • FICO Scores consider both positive and negative information in your credit report. Late payments will lower your FICO Scores, but establishing or re-establishing a good track record of making payments on time will raise your score.
    • 30 % Amounts Owed
    • 10 % New Credit
    • 15 % Length of Credit History
    • 35 % Payment History
    • 10 % Credit Mix