A credit score is a number calculated by a credit bureau, a lender or another company intended for use in making a decision on a loan application or other product or service. (For example, many lenders use a system developed by Fair Isaac and Company called the "FICO score.") Think of credit scoring as a point system based on your credit history, designed to help predict how likely you are to repay a loan or make payments on time. Everyone with a credit record also has a credit score. Different lenders and other companies may use different scoring systems, so your score (and the products or services you're offered as a result) may vary significantly from one source to another.
In general, the better your credit score the better your chances are of getting a loan with an attractive interest rate. Alternatively, a poor credit score may mean you can only qualify for a "subprime" loan—one with a higher interest rate and higher fees than those offered to applicants with "prime" credit records. So when it comes to getting a good loan, it's important that your credit report—the basis for your credit score—is accurate, complete, and in the best shape possible.
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A credit score is a number calculated by a credit bureau, a lender or another company intended for use in making a decision on a loan application or other product or service. (For example, many lenders use a system developed by Fair Isaac and Company called the "FICO score.") Think of credit scoring as a point system based on your credit history, designed to help predict how likely you are to repay a loan or make payments on time. Everyone with a credit record also has a credit score. Different lenders and other companies may use different scoring systems, so your score (and the products or services you're offered as a result) may vary significantly from one source to another.
In general, the better your credit score the better your chances are of getting a loan with an attractive interest rate. Alternatively, a poor credit score may mean you can only qualify for a "subprime" loan—one with a higher interest rate and higher fees than those offered to applicants with "prime" credit records. So when it comes to getting a good loan, it's important that your credit report—the basis for your credit score—is accurate, complete, and in the best shape possible.