Published: 2026-08-15
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What is a credit score?
A credit score is a three-digit number that represents your creditworthiness. Lenders use it to decide whether to approve you for credit and what interest rate to charge. Scores typically range from 300 to 850, with higher scores indicating lower risk.
How is my credit score calculated?
Your credit score is based on several factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Payment history and amounts owed have the biggest impact.
What is a good credit score?
Generally, a score of 700 or above is considered good, and 750 or above is excellent. A higher score can help you qualify for better interest rates and loan terms. Check your score regularly to track your progress.