What Is a Credit Score Anyway? This Number Really Does Matter

Your credit score plays a crucial role in your financial life, impacting loan approvals and interest rates. FICO and VantageScore are the two main credit scoring models, with scores ranging from 300 to 850. Factors determining credit scores include payment history, amounts owed, length of credit history, new credit, and credit mix. Improving a credit score involves timely payments, maintaining low credit utilization, diversifying credit accounts, and monitoring your credit score regularly. Various services offer free credit score monitoring, such as banks, credit card issuers, Mint, Credit Karma, and Experian. Understanding and improving your credit score is essential for financial well-being and accessing better loan terms. FICO scores are most commonly used by lenders, with 850 being the highest score achievable in both FICO and VantageScore models. The content on this page is independently written and not influenced by advertising. Compensation may be received for clicks on partner product or service links.