Definition: A credit score is a numerical summary of the information contained in your credit report. Credit scores typically range from 300 to 850 with higher credit scores being better. Your credit score is calculated based on the information in your credit report. The more negative information in your credit report, the lower your credit score will be. The Six Worst Credit Report Entries include charge-offs, debt collections, bankruptcy, foreclosure, tax liens, and judgments.
Many creditors, lenders, and other businesses use your credit score to make a quick decision about approving your application or giving you a competitive interest rate.
You have several different credit scores. The most widely-used credit score is the FICO score, a branded score developed by a company called FICO (formerly Fair Isaac). You have a FICO score based on information in each of your credit reports from the three major credit bureaus - Equifax, Experian, and TransUnion. Each bureau also has their own credit scoring formula. How to Check Your Credit Score.
