This chapter will discuss what a credit score is and how it is calculated.
You will also learn about the different types of credit scores and which one you really need to be paying attention to (and which ones you should not worry about).
Additionally, you will read about how to find out what your credit score is and then how to improve it.
What Is A Credit Score?
When a company wants to determine what type of credit you have, they will often use your credit report and credit score to help make that determination. Your credit report has information about accounts, balances, payments, and more.
However, the one thing your credit report does not always contain is your credit score! Your credit score is based on your credit report information, but must be requested separately from the credit report.
Your credit score is a three digit number, usually ranging from 300 to 850. The higher the number, the better your credit score is.
Credit scores are used to determine what interest rate you will receive on many loans.
The score is also used to determine whether or not a lender actually wants to lend you money in the first place.