What is a credit score?
When a consumer applies for credit lenders want to know what risk they’d take by loaning money. A credit score helps lenders evaluate a credit report. It is a number that summarizes credit risk, based on a snapshot of a credit report.
Ultimately, credit scores influence the credit that’s available and the terms that lenders may offer.
What is a good credit score?
FICO Scores have a 300–850 score range. The higher the score, the lower the risk. But there is no magic number whether a specific person will be a “good” or “bad” customer.
While many lenders use FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable for a given credit product.
How can I improve my credit score?
Make healthy repayment habits such as:
Pay your bills on time, get current with missed payments; keep balances low by paying off debt rather then moving it around. Don’t close unused credit cards and don’t open unneeded credit accounts. Be smart about credit.
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