What's a Credit Score?

Credit is the amount of money a lender will allow you to borrow based on your income, current debt situation and your past payment history.

A credit score is a number calculated from the information contained in your credit file. The most widely used score is called FICO and is used by the major credit repositories. It is based off your current debts, balances and payment history. This includes mortgages, credit cards, auto loans, liens and/or bankruptcies. Lenders use it as an important tool in deciding if they will lend you money and at what rate. Credit scores range from 400-850.

Generally if your score is over 700 you have good credit. Under that, and you may pay a higher interest rate to borrow money.