All You Need to Know About Credit Score

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This article includes what is credit score, How can you get your credit score for free, How does your credit score calculate, A guide to credit score ranges, what exactly do these ranges mean and how they impact your financial options. What’s more, you’ll know What affects credit scores the most and based on it, what should you do to manage your credit score properly. Hope these guides can help you to know credit score better, then manage them well.

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What is the credit score?

A credit score is a tool used by lenders to help determine whether you qualify for a particular credit card, loan, mortgage or service.


How can you get your credit score for free?

  • Check your credit card, financial institution or loan statement. Many credit card companies, banks and loan companies have started providing credit scores for their customers. It may be on your statement, or you can access it online by logging into your account.

  • Purchase credit scores directly from one of the three major credit bureaus or other providers, such as FICO.

  • Use a credit score service or free credit scoring site. Some sites provide a free credit score to users. Others may provide credit scores to credit monitoring customers paying a monthly subscription fee.

  • In addition to checking your credit scores, it’s a good idea to regularly check your credit reports to ensure that the information is accurate and complete.

You’re entitled to a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus by visiting www.annualcreditreport.com. You can also create a myEquifax account to get two free Equifax credit reports each year.  

In addition, you can click “Get my free credit score” on your myEquifax dashboard to enroll in Equifax Core Credit™ for a free monthly Equifax credit report and a free monthly VantageScore® 3.0 credit score, based on Equifax data. A VantageScore is one of many types of credit scores.


How does the credit score calculate?

Credit score is calculated based on FICO® Score 8 model, unless otherwise noted. Here's an example to help you understand.

Your payment history generally makes up 40% of your score, while credit utilization is 20%. The length of your credit history contributes 21%, and total amount of recently reported balances 11%. Finally, new credit accounts are responsible for 5% while your available credit makes up 3%. All of these values are then broken down into a credit score, which typically ranges between 300 and 850—the higher the number the better. TransUnion's credit score check can let you know where your score falls.

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