About Your Credit Score

What is a credit score?

Your credit score is a based on a formula that turns your credit report information into a number. This number represents your credit risk to lenders. The scores generally range from 280 to 850, with a higher score indicating you're less of a credit risk.

Lenders look at your credit score and credit report when they determine whether to extend a loan to you, and to decide what the interest rate on that loan should be. If you have a good credit score, you are more likely to receive a loan with favorable terms. In fact, a 100-point difference on your credit score could add up to over $40,000 extra in interest payments on a $300,000 home loan over 30 years.

What actions can affect my credit score?

Credit scores can be changed by a variety of factors. We've grouped some common choices as "good" or "poor" below, but there are many different things that can affect your credit score. That's why Equifax's Interactive Score Simulator is such a great tool. It will let you know how the actions you take can positively or negatively change your score.

Good choices: Bills paid on time Low credit card balances Older credit accounts Poor choices: Missed payments Late payments Too many requests for credit Foreclosure

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How do I measure up?

The national range of Equifax credit scores is indicated in the chart below.

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Does my credit score solely determine if I get credit?

No. Among other things, lenders also look at your ability to repay a loan, your employment history and your credit history. They then apply their own specific underwriting policies to the sum of this information and make a decision. Decisions and terms will vary by lender, so it's always a good idea to apply to several different vendors.