When you apply for credit, lenders determine your credit risk by examining your credit scores, also known as FICO® scores because they are calculated with software developed by Fair Issac and Company. Each of the three main credit bureaus - Experian, TransUnion, and Equifax - keep credit information about you that is used to calculate your FICO® scores. Such information includes your payment history, the amount of money you owe, the length of your credit history, and the number of recently opened credit accounts.
Your FICO® scores guide lenders as to what your credit risk is. Scores range from 300 to 850. The higher your score, the lower your perceived risk to a lender.
For a free estimate of your credit score, visit www.whatsmyscore.org/estimator.