What is a credit score? How is my credit score calculated?
A credit score is a number that reflects the information in your credit report. The score summarizes your credit history and helps lenders predict how likely it is that you will repay a loan and make payments when they are due. Lenders may use credit scores in deciding whether to grant you credit, what terms you are offered, or the rate you will pay on a loan. Information used to calculate your credit score can include: • the number and type of accounts you have (credit cards, auto loans, mortgages, etc.); • whether you pay your bills on time; • how much of your available credit you are currently using; • whether you have any collection actions against you; • the amount of your outstanding debt; and • the age of your accounts.
