What is a Credit Score?  A credit score is a numerical analysis of a consumers’ creditworthiness – a statistical rendering of a consumers’ likelihood to default on a credit payment.  Payment histories, level of indebtedness, available credit levels, available credit use, types of credit and other related data is considered.  Scores reflect only one’s past credit history – not personal characteristics like age and gender.

What are Credit Scores used for?  Credit scores are increasingly used to grant consumers access and help determine the interest or repayment cost of a variety of lending instruments including mortgages, credit, insurance, electric and telephone service to apartment rentals and more. 

What is a “Good” Score?  Consumers with scores below 600 are typically charged relatively high loan rates.  Scores above 700 are considered “good” and typically grant consumers access to relatively low interest rates.  And those with scores above 760 are considered “excellent” and typically receive access to the lowest rates available.

How can you improve your Credit Score? The best thing a consumer can do to improve her/his credit score is to pay bills consistently and on time.  If you have missed payments, get caught up and stay on top of payments.  Don’t max-out credit cards or other revolving credit.  Pay off debt instead of transferring it. Don’t open and close new accounts rapidly.  And check your credit report once a year to make sure it is accurate. 

How can you obtain your Credit Score or Credit Report?  Consumer credit scores and reports are issued by and available for a fee from the three major credit reporting bureaus: Equifax; Experian; and TransUnion.  However, the data that most lenders use to evaluate a consumer’s credit worthiness is provided by Fair Isaac Corp (FICO).  Consumers can order their FICO score from Fair Isaac at www.myfico.com.