What Is a Credit Score?
A credit score is a three-digit number (typically ranging from 300 to 850) that represents your creditworthiness. Lenders, landlords, insurers, and even employers use credit scores to evaluate your financial reliability. The most commonly used scoring model is the FICO score.
How Credit Scores Are Calculated
Your credit score is calculated based on five key factors: Payment History (35%) — your track record of making payments on time; Credit Utilization (30%) — how much of your available credit you're using; Length of Credit History (15%) — how long your accounts have been open; Credit Mix (10%) — the variety of credit types you have; and New Credit (10%) — recent credit applications and inquiries.
Credit Score Ranges
Exceptional (800–850) means you qualify for the best rates. Very Good (740–799) gets you favorable terms. Good (670–739) is acceptable to most lenders. Fair (580–669) means higher interest rates. Poor (300–579) may result in difficulty qualifying for credit.
Improve Your Score
Understanding your score is the first step to improving it. Contact 755CreditScore at 832-696-0755 for a free consultation and personalized improvement plan.