Learning Center
What is a Credit Score?
A credit score is a rating used by a lender to help determine whether you qualify for a particular credit card, loan, or service. Based on information in your credit file, the credit reporting company analyzes your information using a complex mathematical model to yield your credit score.
Most credit scores estimate the risk a company incurs by lending you money or providing you with a service -- specifically, the likelihood that you'll fail to make payments in the next two to three years. The higher the score, the less risk you represent. Your score is calculated by a mathematical equation that evaluates many types of information found in the credit file.
What Factors Affect a Score?
Many different formulas are used to calculate credit scores, but most are based on the following factors, which each scoring model weighs differently:
Payment history. A record of late payments on your current and past credit accounts will lower your score.
Public records. Matters of public record such as bankruptcies, judgments, and collection items may lower your score.
Amount owed. Owing too much will lower your score, especially if you're approaching your total credit limit.
Length of credit history. In general, a longer credit history is better.
Inquiries. Whenever someone else gets your credit report -- a lender, landlord, or insurer, for example -- an inquiry is recorded on your credit report. A large number of recent inquiries may lower your score.
Accounts in use. The presence of too many open accounts can lower your score, whether you're using the accounts or not.
You Have More Than One Score
The most commonly used credit score is a FICO® credit score, used by over 70% of the nation's creditors to make financial decisions about consumers. To learn more about FICO® scores, visit About FICO® Scores.
Want to Know Your Score?
Score Power® provides you with your current FICO® credit score and a copy of your Equifax Credit Report™.
To Obtain Your Credit Score
By law, you are entitled to obtain your credit score. There is a fee of $7.95 to obtain your credit score from Equifax Information Services. To request your credit score, please contact:
Equifax Information Services LLC
P.O. Box 105167
Atlanta, GA 30348
or call
1-877-SCORE-11
If you are in the process of obtaining a mortgage, you may be entitled to free credit score information. Contact the person making or arranging your loan for further information.