Your credit score is a number between 300-850 that represents your credit history and how you've handled previous credit. The most widely used credit scores are issued by the Fair Isaac Corporation and are called FICO Scores. Lenders will use your credit score to help evaluate your credit risk when deciding whether or not to give you credit.
The higher your credit score, the lower your credit risk. However, there is no specific number that determines a "good" score. While lenders will consider your credit score, it is only one of many factors they will be used to determine your interest rate, terms, etc.
Your credit score is calculated using five different factors, with each weighing differently. It includes your payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit (10%).
There are three main things you can do to improve your credit.
Still have questions? Feel free to call our Finance department here at Roger Williams CDJR today!
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