Credit score overview

Having good credit is important. Really important. And a big part of maintaining good credit is understanding what your credit score is and how it’s calculated.

Here’s what you need to know.

Your credit score is a numerical expression of your credit report

Credit bureaus use the information in your report to assign you a number between 300 (worst credit possible) and 900 (best credit possible).

They take a variety of factors into account when they do the calculation:

  • Your payment history
  • How long you’ve had credit
  • The amount of credit you have available
  • How much credit you use on a monthly basis
  • How often you apply for more credit or if you’ve recently applied for more credit

Why your credit score matters

Your credit score determines how much money you can borrow and at what rate. It also plays a huge role in what kind of financial products you’re eligible for. Credit cards are a great example: only customers with great credit are eligible for some of the best credit cards.

To learn more about credit scores, visit our FAQs.