What exactly is your credit score?

Your credit score, also known as your FICO score, or credit bureau score, is what credit agencies use to decide how reliable you are with credit. They use it to determine how much credit, if any, they should give you. A credit score can generally range anywhere from 300 – 900 where the higher the number the better the score. You should strive to keep your credit score at least above 600. Many places may not even consider looking at a loan application if your credit score is below 600. For this reason it should be a top priority to keep your credit score as high as possible.

There are three main credit reporting agencies. These agencies are TransUnion, Experian, and Equifax. The information contained at these agencies may vary depending on who your particular credit provider reports to. Not all credit providers report to all credit score agencies. So it is advisable to check all three to see the full picture of your current credit score.

Several things influence your credit score, and it is important to monitor all these effectors. One such thing is the amount of times you, or anyone, checks your credit score. The more it is checked the more it could potentially hurt your score. The types of credit you have had, or currently have can affect your score as well. If all your credit lines are unsecured then you may be viewed as ‘high risk’. Late, or prompt payments will leave a mark on your credit score. The size of the balance on credit cards might change your score. It is best to try and keep your balance to around 50% of your limit. The length of time you’ve had a credit score is also something to note. Seven years or so, of credit history, will have the best effect on a  FICO score.

Discriminatory factors do not play a role, or at least should not play a role on your FICO score. These factors are sex, gender, age, marital status, location, and employment history.