A numerical expression representing a person's creditworthiness based on their credit history.
A credit score is a three-digit number that represents your creditworthiness based on information in your credit report. Scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Credit scores are calculated using factors including payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Lenders use credit scores to evaluate the probability that you'll repay loans and credit cards on time.
A credit score of 750 is considered very good and would likely qualify you for the best interest rates on mortgages and loans, potentially saving thousands of dollars over the life of a loan compared to someone with a score of 650.