Basic Information About Credit Scores

To many of us, credit remains a mystery. What exactly is a Credit Report, and why does it matter? How do Credit Scores play into it, and how are they calculated? If you want to learn more about your credit and how to take better care of it, this is a great place to start!

  • Yes! Credit Matters: What’s in a Number?

    A Credit Score is a number based on the information in your Credit Report. It’s similar to a grade you receive in school, but instead of right and wrong answers your Credit Score is based on positive and negative credit history. Paying your bills on time and using your credit responsibly builds a positive history, while paying bills late and over-extending your credit build a negative history.

  • Yes! Credit matters: The importance of your Credit Report

    So what’s a Credit Report and why’s it so important? A Credit Report is a record of your payment history and other credit-related details that lenders use to determine if they should give you credit. The information on your Report is compiled by the credit bureaus, which regularly receive data on whether you make payments on time and how much you owe. Since creditors are constantly reporting new information to the bureaus, your Credit Report is always changing.

Score Planner

See how different events might impact your Credit Score. The Score Planner is available to both members and non-members.

Types of questions you'll see:

  • icon-credit-card.pngWhat if I pay off that card?
  • icon-apply-car-loan.pngWhat if I apply for a loan?
  • icon-late-payment.pngWhat if I have a late payment?
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Question: What is a Credit Score?

Answer:

A Credit Score is a number based on the information in your Credit Report. It is similar to a grade you would have gotten in school, but instead of right and wrong answers your Credit Score is based on positive and negative credit history. Paying your bills on time and using your credit responsibly builds a positive history while paying bills late and being irresponsible with your credit builds a negative history.
 
There are many different ways to calculate a credit score. freecreditscore.com uses the PLUS Score® calculation, which is the standard calculation offered by Experian®.
 
>> Learn more about Credit Scores

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