CREDIT SCORES

Your credit score is a number assigned to you based on your history with money. Three companies gather data and create credit reports which are used to calculate your score: TransUnion, Equifax, and Experian.

How your FICO is calculated:

FICO Scores are calculated using many different pieces of credit data in your credit report. This data is grouped into five categories:

payment history (35%)
amounts owed (30%)
length of credit history (15%)
new credit (10%)
credit mix (10%)

Get your FREE credit report!

Get your free credit report at https://www.annualcreditreport.com/index.action

Remember, the credit report does not include a credit score. The credit report includes information used to calculate your score.

Your credit score will have a significant impact on the rate you will pay when borrowing money.

Credit scores range from 350 to 850
Higher is better
Your goal should be a score above 720.

Where can you get your credit score? There are several free sites including Credit Karma. Do not pay for your credit score or enter a credit card number. https://www.creditkarma.com/

Some credit cards will provide your credit score each month. (Read more about this in the section on credit cards.)