What’s a credit score?
A credit score is a number that represents a rating of how likely you are to repay a loan and make the payments on time. Lenders calculate your credit score using information in your credit report, like your history of repaying money you borrowed, the types of loans you’ve had, how long you have had a particular line of credit or loan, and how much total debt you owe. Most lenders use is the FICO score.
It is important to know and review your credit score
Your credit score is based on your credit history. Usually, your credit score will fall between 300 and 850.
- A high score means you have “good” credit, which means businesses think you’re less of a financial risk. You’re more likely to get credit: a loan, credit card, insurance — or to pay less for that credit.
- A low score means you have “bad” credit, which means it will be harder for you to get credit. You’re more likely to pay higher interest rates on credit you do get.
What’s the connection between my credit report and my credit score?
Creditors use your credit score to help decide whether to give you credit and what the terms will be, including what interest rate you’ll pay to borrow money. Your credit score is calculated using information in your credit report. Your credit report, which lists your payment history and information about the debts you owe, is a key part of many credit scoring systems. That’s why it’s so important to make sure your credit report is accurate. Federal law gives you the right to get a free copy of your credit report from each of the three nationwide credit bureaus once every 12 months.
Through December 2023, everyone in the U.S. can get a free credit report each week from all three nationwide credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com.
To order your free annual credit report from one or all of the nationwide credit bureaus
- visit AnnualCreditReport.com
- or call toll-free 877-322-8228
- or complete the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service
P.O.Box 105281, Atlanta GA 30348-5281
Also, anyone in the U.S. can get 6 free credit reports per year through 2026 by visiting the Equifax website or by calling 1-866-349-5191. That’s in addition to the one free Equifax report (plus your Experian and TransUnion reports) you can get the form at AnnualCreditReport.com.
