Credit Score

Definition

A numerical value for lenders to assess creditworthiness.

• Range: 300–850

Calculation Factors

• Length of credit history
• Amount owed (credit utilization)
• Payment history
• Bankruptcy history

Score Ranges

• 300–579: Poor
• 580–669: Fair
• 670–739: Good
• 740–799: Very Good
• 800–850: Excellent

Importance

• Loan and credit card approval
• Determines interest rates
• Affects rental applications, employment, utility deposits

Checking Your Score

• Free via credit card companies
• Free websites/apps (e.g., Credit Karma)
• Purchase from Experian, Equifax, TransUnion
• Free annual credit report (no score)

Improving Your Score

• Pay bills on time
• Keep credit utilization below 30%
• Monitor credit reports for errors
• Build longer credit history
• Limit new credit applications
• Maintain a mix of credit types

Factors Lowering Your Score

• Missed payments
• High debt levels
• Multiple credit applications (hard inquiries)
• Loan defaults
• Short credit history
• Bankruptcy