What Is a Credit Score? There are three major credit bureaus: 1. Experian 2. Equifax 3. TransUnion

They monitor your loan and payment history. Then they assign a three-digit number that tells potential lenders your repayment risk. Credit score:

U.S. credit scoring models include FICO and VantageScore. FICO has been around since 1989. VantageScore: Founded in 2006 to compete with FICO and ensure fair credit reports and scores.

Your FICO credit score consists of a number ranging from 300 to 850. A score of 600 or lower is considered poor, while a score of 750 or higher is considered excellent.

What’s Your FICO Score Made Of? Your FICO credit score is calculated using five main factors: Payment History Credit Utilization Credit History New Credit Credit Mix

What Makes Up a VantageScore? Your VantageScore can range from 501 to 990. It includes similar factors as your FICO score, but with different weights given to each factor:

Unlike FICO, VantageScore takes into account your total balances, which includes all credit to your name (credit cards, loans, mortgage, etc).

How to Improve Your Credit Score Pay on Time Pay Down Balances Mix Up Your Credit Don’t Be Afraid to Check